BTP Bund Spread Interpretation
The spread is the difference between the yield on BTPs and the yield on bunds. To put it simply, if the former is 3% and the latter is 1%, the spread is equal to 2%, i.e., 200 base points. Consequently, the Italian government would have to pay 2% more interest than the German government on this type of note.
What is a bund rate?
Bund Rate means, as of any Redemption Date, the rate per annum equal to the yield to maturity as of such Redemption Date of the Comparable German Bund Issue, assuming a price for the Comparable German Bund Issue (expressed as a percentage of its principal amount) equal to the Comparable German Bund Price for such …
What is German bund yield?
Yield Open0.707% Yield Day High0.82%
What do you know about Bund?
Bunds are debt securities issued by the German government to generate revenue with which to finance expenditures. They are accepted by the European Central Bank (ECB) as collateral for credit operations. Bunds may be stripped, meaning coupon payments and principal repayments can be sold separately.
What are Italian bonds called?
Main issuers
| Currency | Country | Generic Name or Nickname |
|---|---|---|
| Euro | Italy | BTPs |
| Euro | France | OATs |
| Euro | Germany | Bunds |
| Pound sterling | United Kingdom | Gilts |
What is the 10 year bund yield?
Bund Yields
| Name | Coupon | Yield |
|---|---|---|
| GTDEM2Y:GOV Germany Bund 2 Year Yield | 0.00 | 0.03% |
| GTDEM5Y:GOV Germany Bund 5 Year Yield | 0.00 | 0.57% |
| GTDEM10Y:GOV Germany Bund 10 Year Yield | 0.00 | 0.84% |
| GTDEM30Y:GOV Germany Bund 30 Year Yield | 0.00 | 1.01% |
What are Bund futures?
The Bund Future is traded on the Eurex® exchange. The underlying instrument is a notional bond that represents a basket of deliverable bonds with an interest rate of 6 per cent and a time-to-maturity of between 8.5 and 10.5 years. The value of a Bund Future contract is €100.000.
What is the current 5 year German bund yield?
a 0.584%
The Germany 5 Years Government Bond has a 0.584% yield (last update 23:15 GMT+0).
What are German Bunds?
A Bund is a fixed-interest, euro-denominated security issued by Germany’s federal government to fund its debt. in practice While the term ‚Bund‘ refers specifically to bonds with maturities of 10 years and longer, it is used for a broader range of German government debt securities.
What is yield of bond?
A bond’s yield is the return to an investor from the bond’s coupon (interest) payments. It can be calculated as a simple coupon yield, which ignores the time value of money, any changes in the bond’s price, or using a more complex method like yield to maturity.
What does D stand for in bond ratings?
Bond ratings are expressed as letters ranging from “AAA”, which is the highest grade, to “D”, which is the lowest grade.
What are French bonds called?
OATs
OATs (Obligations assimilables du Trésor) are government bonds issued by Agence France Trésor (French Treasury), generally by auction according to an annual calendar published in advance.
What is a bulldog bond?
A bulldog bond is a type of foreign bond issued by non-British corporations seeking to raise capital in pound-sterling from British investors. Bulldog bond is a bond, traded in the United Kingdom, that is purchased by buyers interested in earning a revenue stream from the British pound.
What is a maple bond?
Maple Bonds are defined as “Canadian-dollar- denominated bonds issued by foreign borrow- ers in the domestic Canadian fixed-income market.” Foreign-issued bonds are popular in most major fixed-income markets, including the United States (Yankee Bonds), the United Kingdom (Bulldog Bonds), Japan (Samurai Bonds), New …
What is a kangaroo bond?
A kangaroo bond is a foreign bond issued in Australian dollars by non-domestic entities, including corporations, financial institutions, and governments. Simply put, a foreign bond is issued in a domestic market by a foreign issuer in the currency of the domestic country.
What is Dragon bond?
A dragon bond is a long-term debt security issued by firms operating in Asian nations (excluding Japan), but denominated in foreign, stable currencies, such as the U.S. dollar (USD) or the Japanese yen (JPY).
Why it is called Masala bond?
Why is it called Masala bonds? Masala bonds are issued outside India but denominated in Indian Rupees rather than the local currency. Masala is an Indian word that means spices. The IFC used the term ‚Masala‘ to evoke the cuisine and culture of India.