I have a long-term bank loan (assume LIBOR) I need to hedge. I can do this with a swap, but I also need to protect if rates go below zero - the bank always assumes greater of LIBOR or 0.

What is the best way to do this (option?) and how would I price it?

<t>A municipality, such as a State of County, usually has a main source of revenue the future collection of taxes (e.g., sales tax). If the sales taxes do not come in as forecasted, then the municipality will need to make up the difference through another funding mechanism. What is the best way to d...

<t>What is the best way to determine forward rates for 30 year maturity Treasuries?I know how to dervie forward rates using the spot rate curves, but run into an issue when I need to determine the 30 year in the future (I need liquid spot rates past the 30 year point). Is there another methodology o...

HTFB,Generally, you can only short ultras on major market indicies (e.g. for RS2K, I can short the 3X TZA&TNA). I bump into the same issue with the other ultras (and have tried at multiple brokerages). I have some experience with this -- shoot me a PM if you would like.

Somedevil,All sounds very interesting and was looking forward to the additional detail. I also tried to send you a PM here, but apparently you did not recieve?

<t>Exuse me for butting in, but I don't think this is the case.Let's take the ultra long, as its easier to illustrate. The ultra trades such that it has a DAILY return that is double the index value, in any given, lengthy time period, the "expected value" will not be 2X the index (this is due to vol...

<t>Exuse me for butting in, but I don't think this is the case.Let's take the ultra long, as its easier to illustrate. The ultra trades such that it has a DAILY return that is double the index value, in any given, lengthy time period, the "expected value" will not be 2X the index (this is due to vol...

I am interested in determining what the AMT penalty (extra spread) is on Public Activity Bonds. I have done a web serach and not come up wtih anything. I know what the benchmark MMD rates are for munis, how much do I need to add to account for AMT? I know it is term dependent.Any ideas?Thanks.

<t>Thank you very much for what must be very basic questions! This makes sense, and I think I can see if I can work through the 5 year probability number myself to be sure I understand.Let me take this a step further please. I am looking on Markit and see that the CDX.NA IG index is now shows the fo...

<t>I have some very basic CDS questions, that I hope someone can help with. Please see the recent news article. I have several begginer questions, relating to the article:Per the article, it now costs $950,000 to protect $10 Million in debt for one year. 1) How does one calculate that this is "equiv...

Ummm...have you heard of google?

<t>Trader Joe.You have a good sense of humor. "I see. OK. Ummmm..."?? I have heard of google. Have you heard of helping a newbe with a question or do you get more of a quick rush from talking down to them?FYI. I used google initially, before coming to this sacred forum. And, I did use the all-mighty...

Nope. That is why I am posting my question on the student forum.

I am not familiar with cdx/ittraxx. Could you please enlighten me?

With the last ones standing -- Assured and FSA -- now battered, monolines are no longer viable ways to wrap investment grade project debt. What are the other alternataive to consider? How much would a bank LOC cost in comparison?