Evaluating Bond Portfolio Swaps
If all bond swaps were good bond swaps, we would use a more constructive title for this chapter and call it EVALUATING BOND PORTFOLIO IMPROVEMENTS. Alas, however, there are as many bad swaps as good, so we have chosen the conventional and neutral term "swap." The purpose of this chapter and the next is to present a comprehensive method of evaluating several types of swaps. This method combines in one figure most of the advantages and disadvantages of each specific swap in a way that permits an overall measurement of possible loss or gain.
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