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E. higher bond price.
They can mimic the downside of bond price movements.
This raises the bond price and lowers the yield.
"All of the news is baked into the bond price," she added.
But the same insurance mechanism that stabilizes prices from a decline makes investors miss bond price rallies.
We can easily judge this by observing "the basis", that is the differential between the CDS price and the cash-market bond price.
Similar(13)
So bond prices plummeted.
Bond prices were mixed.
Bond prices also plunged.
Bond prices sank.
Bond prices were lower.
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