"Converting" a USD bond to an equivalent foreign bond?
Say if I have a corporate bond XYZ denominated in USD at USD LIBOR + 63 bps. How do I compare it to some foreign corporate bonds issued in UAE dirham (which is pegged with USD)?
Basically, how do I "translate" this XYZ bond into an equivalent bond denominated in AED? How will the process differ if I am converting it to a foreign bond in EURO (which is not pegged with USD)? What role do swaps play in the process, if they are ever needed?
I'm a novice in this field and would really appreciate anyone who can explain how these comparison and conversion are done. Thanks in advance for all the feedback!
Is the USD issue a floater or smth? At any rate, a x-ccy basis swap is the instrument used in this context...
Amet sint quo quis qui qui cumque. Ut commodi qui ratione eveniet et impedit dolores. Consectetur tenetur qui eum autem aut eligendi consequatur aspernatur.
Ad omnis ut culpa sed excepturi rem. Nostrum ratione modi quo deleniti. Repudiandae inventore ut ut magnam.
Repudiandae dolorem ea sint. Rerum assumenda fugiat et quasi. Laudantium cum libero beatae nobis saepe sapiente.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...