bond rollover: What is a Bond Coupon Rollover?
- 04/12/10 03:00 AM
What is a Bond Coupon Rollover? The Bond Coupon Rollover is an event that happens every month at which time the current month's coupon is closed out and any new loans are placed with next month's coupon. On Friday, the monthly Bond Coupon Rollover happened, and we saw the price of bonds drop by almost 40 bps. However, despite this, there was no effect on mortgage rates because this was a paper drop in bond prices. One way to help understand this is to think of each month's issuance in terms of the time they mature. A 30 year bond will … (0 comments)
What is a Bond Coupon Rollover?
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