Hi @David Harper CFA FRM,
In P2.T6. Collateral,
on slide 29/50, "Some counterparties may subtract a spread on cash to discourage receiving cash collateral (and encourage securities), since cash must be invested to earn interest or placed back in the banking system"
on slide 38/50, "Some...
Hi @David Harper CFA FRM, I would like to quote from https://www.bionicturtle.com/modified-duration/:
"if modified duration is 6.0 years, then we estimate (approximate) a price drop of 0.60% for a 10 basis point increase in the yield."
From the quote and my readings thus far, given mod duration...
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