A measure of basis points as absolute spread or return. For example, if the expected carry for a swap (carry on a swap) is 30 cents over a specific period, then the carry on a USD 10 million notional principal amount would be equal to USD 30,000. Therefore, this measure doesn’t show how far the swap yield curve must shift for the carry to become zero.
Derivatives
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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