B
Batsirai Kapembeza
Member
Hello,
The core reading states that one method of performing a check for an anomaly switch in active bond management is to use yield models and under the yield models approach it states that;
"Rather than compare a bond’s yield with a redemption yield curve it can be compared with one of the alternatives such as a yield surface or par yield curve."
My someone please kindly explain what a yield surface is in this context. Thanks.
The core reading states that one method of performing a check for an anomaly switch in active bond management is to use yield models and under the yield models approach it states that;
"Rather than compare a bond’s yield with a redemption yield curve it can be compared with one of the alternatives such as a yield surface or par yield curve."
My someone please kindly explain what a yield surface is in this context. Thanks.