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Re:Pricing Money: A Beginner's Guide to Money, Bonds, Future... by tech_ken on Friday June 16, 2023 @04:02PM (#36363023)
Sure I’m pro-risk management. So by arbing lending-rates which risks are mitigated?
Re:Pricing Money: A Beginner's Guide to Money, Bonds, Future... by tylerhou on Friday June 16, 2023 @06:20PM (#36364741)
E.g. interest rate risk. Maybe I've sold a bunch of variable-rate bonds before. But now I am worried about interest rates rising. I can't call the bond for some reason (maybe not enough money, maybe some regulatory reason). So I buy an interest rate swap that pays out if interest rates rise.