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Hedge Fund Strategies (11) – Liquidity-Based Yield Spreads

Hedge Fund Strategies (11) – Liquidity-Based Yield Spreads

Liquidity is the ability to sell a security without significantly affecting its price. This is a positive attribute, and all things being equal, traders will pay more for securities with higher liquidity.

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Copyright 2011 Eric Bank, Freelance Writer
Hedge Fund Strategies (9) – Asset Swaps

Hedge Fund Strategies (9) – Asset Swaps

Let us resume our tour of hedge fund strategies based on different types of fixed income arbitrage. An asset swap is an over-the-counter agreement between two counterparties to exchange fixed-rate interest payments for floating-rate interest payments.  The fixed portion is a position in a fixed-rate loan, such as government or corporate bonds.  The floating-rate portionRead more about Hedge Fund Strategies (9) – Asset Swaps[…]

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Copyright 2011 Eric Bank, Freelance Writer