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poszar


Total Posts: 1
Joined: Jan 2019
 
Posted: 2019-01-10 23:01
hi guys,

sorry for noob question in advance (i'm a student still getting to grips with ir vol)

if i was to buy an accreter b/e switch (in the context of trading bottom right vols partly based on callable issuance, e.g formosa bonds) i would be long fwd vol and would utilize relative cheapness vs long term averages (and cheapness of accreters vs bullets) to strap on carry exposure.

can anyone shed some more detail, i.e how is this trade structured, what are the legs? what are the main risks of this trade?

thx
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