Derivatives

Cash-and-Carry Trade

March 26, 2021
Derivatives

Credit Spread Curve

March 26, 2021

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An irregular swap that is based on the exchange of returns originally generated by specific instruments/ investments rather than interest rates. This swap, thus, involves the exchange of irregular streams of cash flows, i.e., which are not referenced to market rate benchmarks such as LIBOR.

Examples of cash flows swaps include zero coupon swaps or inflation-indexed swaps.

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