Going short the basis is just the opposite of going long the basis, or buying the basis. It involves selling...

The difference between the synthetic credit risk premium (the price of credit risk quoted in a credit default swap) and...

The difference or gap between a CDS premium and a corresponding par asset swap spread for the same reference entity....

Transactions which are made with respect to portfolio holdings or a basket of assets where the position price or cost...

An offer to sell, or a fulfilled sale of, a cash commodity in terms of a specified amount above or...

An interest rate swap in which two floating rate instruments are exchanged. In other words, the two streams of floating...

A basis point (bps) is 0.01 percentage point and equals $1,000 annually on a contract protecting $10 million of debt...

The differential or spread that exists between credit derivatives (such as credit default swaps or CDSs) and their underlying cash...

The basis can develop a narrowing trend when the futures price of an asset/ commodity increases faster than the sport...

A methodology which is used by an exchange clearinghouse to calculate the number of outstanding futures contracts in order to...