Hi everybody. I am not quite sure if this thread fits in the chosen sub forum. Since I am not that experienced in trading, I figured my question would fit best here.
As far as I know, one can synthetically create an inflation linked bond of a certain issuer by simply buying the bond of the issuer and entering as an inflation buyer into a series of zero coupon inflation swaps (each on each payment date of the bond).
My question is: is it possible to synthetically create inflation linked bonds using asset swaps?
I thank you very much for your valuable time.
Kind regards
Dave
As far as I know, one can synthetically create an inflation linked bond of a certain issuer by simply buying the bond of the issuer and entering as an inflation buyer into a series of zero coupon inflation swaps (each on each payment date of the bond).
My question is: is it possible to synthetically create inflation linked bonds using asset swaps?
I thank you very much for your valuable time.
Kind regards
Dave