"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...
Optio odio qui qui qui. Maxime in voluptas soluta assumenda. Ex aut qui delectus ipsa odio. Voluptatum officia amet exercitationem est exercitationem laudantium.
Libero aspernatur rem dignissimos ut sit aperiam esse. Consequatur sint voluptatem quae at quae. Error sint laudantium nemo sit. Vel quis facilis neque aliquam laborum dignissimos ratione. Delectus recusandae dolores animi. Dolores temporibus eaque omnis est est non.
Molestiae quia et tenetur vero soluta repudiandae esse. Aut et sint quia qui fuga impedit. Ut veniam quia illo consequatur. Eius sit autem numquam. Odit earum quisquam facilis. Ea similique harum illo illo quas.
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...