Derivatives

Capped Constant Matuirty Credit Default Swap

December 26, 2022
Derivatives

Convertible Hedge

December 26, 2022

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A fixed-income strategy that aims at buying new cash-generating assets so that their cash inflows will be used to match expected cash outflows. This involves dedicating cash flows generated by assets to assuring payments to creditors. For example, the cash inflows from zero-coupon bonds can be matched off against the projected cash outflows from an institutional investor such as a pension fund.

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