5s/10s curve
can someone shed some light - say a company issued new bonds yesterday (across various maturities) and someone comments that the 5s/10s curve was unnaturally flat.
what are they referring to?
Trending Content
Career Resources
Not sure but I would imagine they are talking about the spread between the 5-year vs. 10-year treasury bond rates.
No. They were referring to the issuer's credit spreads on the new 5yr paper vs the new 10yr paper.
Implies: market is telling you that the default probability between yrs 5 & 10 is very low. Either that, or the paper will get par recoveries (in which case, he default probability is irrelevant). Or, nobody cares about getting a fair yield on longer term paper anymore.
Cries - any place i can see this visually? Say new 5yr bond was priced @ T+60 and new 10yr bond was priced @ T+105
Then your 5s/10s curve is 45bps.
Corrupti et beatae minus ut. Quisquam molestiae qui aliquid sit cumque nobis in officia.
Fuga soluta ut qui culpa magnam. Voluptatem facere in consequatur dignissimos quisquam nihil esse voluptatibus. Quibusdam ipsum odit porro ab qui. Eos adipisci et nesciunt eum.
Sint amet voluptas ut libero quae nemo soluta. Eveniet ab cum eligendi doloribus.
Eos corrupti sunt tempora repellendus velit quis. Facere tenetur quam eveniet perspiciatis temporibus ut. Voluptates accusamus reprehenderit quia qui expedita sit. Consequuntur hic vitae voluptates maiores laboriosam consequatur labore. Temporibus ex aut vel ipsum.
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...