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.
Are Call Options on a Bond the same as a CDS?
Nov 09, 2008
1 Replies
First reply
2.7182818284590... wrote 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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2.7182818284590... wrote
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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