Are Call Options on a Bond the same as a CDS? After all, mortgage payments are basically fixed income payments, except that in the former, principal is also paid and not just interest.
- posted
15 years ago
Are Call Options on a Bond the same as a CDS? After all, mortgage payments are basically fixed income payments, except that in the former, principal is also paid and not just interest.
Nope.
That doesnt make any sense. They arent necessarily even fixed payments.
What former ?
Thats just plain wrong with some mortgages.
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