D
dimitris13
Member
hi,
regarding q 1 ii the revision notes mention
using puttable swaps gives the pension fund managers the option to terminate any existing swap and enter a new one
so pension fund may purchase puttable bonds to stay flexible ; how this is deduced from the previous?
and later it mentions that if yield picks up is high; what dobwe mean here with yield? the yield of the bonds so if goes up the value of the fixed leg will go down? or the rate of the fixed leg ?or sth else?
thanks
regarding q 1 ii the revision notes mention
using puttable swaps gives the pension fund managers the option to terminate any existing swap and enter a new one
so pension fund may purchase puttable bonds to stay flexible ; how this is deduced from the previous?
and later it mentions that if yield picks up is high; what dobwe mean here with yield? the yield of the bonds so if goes up the value of the fixed leg will go down? or the rate of the fixed leg ?or sth else?
thanks