Unformatted text preview: issues which relieves pricing uncertainty and reduces spreads 5. Product structures: Most issues are bullet and intermediate structures 6. Importance of liquidity & an active secondary market in a total return environment 7. Rationales for secondary trading: Spread pick by going to lower rating; Credit upside & defense trades; new issue swaps; sector rotation trades; yield curve adjustment trades; structure trades; cash flow reinvestment 8. Swap Trades – Fixed to Floating; Floating to Fixed; Examples 9. Appropriate trades – for a higher, lower, flatter rate environment 10. Rationales for not trading: Portfolio constraints, Buy and Hold & Seasonality 11. End of chapter problems: 14, 18, 19, 20...
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- Spring '12
- Financial Markets, Top-down and bottom-up design, Global Credit Bond Portfolio, sector rotation trades