Yes, 4.5percentt is greater than 3.22percentt but junk bond references by the Wall Street Journal and Recode should be taken lightly.
The S.E.C. suit charges that the bonds referenced in Goldman's Abacus deal were hand-picked (by Mr. Paulson) to fail.
Comparisons with epoxy bonded references show improvements in ultimate load, maximum deformation and energy absorption capacity.
This has nothing to do with operating a car or having a "license to kill" (for those that didn't catch it, it's a James Bond reference).
There is also the option of physical, rather than cash, trade settlement, in which the underlying bond or reference obligation actually changes hands, from buyer of protection to seller of protection.
Just taking the German 10-year bond a reference point, which on Tuesday was yielding 2.93%, yields get higher, roughly speaking, the further south you go: the Dutch 10 year bond has a spread that is 61 basis points above the German, Spain's is 95 basis points above and the Italian 10-year is 137 basis points higher, according to Cantor Fitzgerald's global portfolio strategist Stephen Pope.
His new autobiography, "Bond on Bond," is referenced, as is Marco Pierre White, veal sweetbreads, whitebait and calf's brains.
In some cases, a single mortgage bond was referenced in dozens of synthetic securities.
The bonds currently reference an MBIA subsidiary that stands behind lots of mortgage-backed securities.
S0 is a reference bond valence and R0 the corresponding bond length.
