Transcription of Fixed income markets (overview) - Eric Benhamou
{{id}} {{{paragraph}}}
Example: bankruptcy
Fixed income markets (overview) - Eric Benhamou
Fixed income markets (overview) Fixed income markets encompass all interest rate financial instruments, like a bond, money market instrument, swaps, caps floors, swaptions and more generally any interest rates derivatives. Investment banks often split their trading activity between equity, foreign exchange, Fixed income , commodity markets as they are all very different markets . 1. markets AND INSTRUMENTS The original motivation for the Fixed income market was to enable the borrowing and lending of money via debt financing with instruments like bonds, Futures and FRAs (Forward Rate Agreement). However, many other instruments have been developed to allow flexible hedging of debt as well as investment and speculation in these markets : swaps, but also options, like caps, floors, swaptions and various more exotic instruments.
The simple instruments1 also referred to as the vanilla products of the fixed income markets are generally liquid instruments, well known by the various fixed income market participants and whose pricing is relatively easy.
Tags:
Information
Domain:
Source:
Link to this page:
Please notify us if you found a problem with this document: