Interest rate swaps
trade duration risk across developed and emerging markets.
Not exact matches
«It's all that
duration risk,» Morganlander told CNBC's «
Trading Nation» on Thursday.
Last week saw the same U.S. - Canada
trade, with equally weighted futures blocks also with a September expiration, though for about half the
duration risk as Wednesday's transaction.
You want to
trade him when demand is at its highest (in other words, when competitive teams panic) but you also need to move him before the foot issue returns, unless you're willing to
risk keeping him for the
duration of his contract.
For that reason, many looking at carry
trading strategies will have to go out over the
risk curve and borrow in a cheap major currency in order to buy a higher - yielding emerging market (EM) currency in order to earn a yield beyond that of higher -
duration US Treasury bonds (considered safe yield).
The subsequent low - volatility screening is designed so that bonds with less
risk, as demonstrated by their
trading pattern, are selected, while
duration and credit rating are held equal.