February 8th, 2009, 4:50 am
Buy = Mine = Bid = Lift the offer = Take = (Pay in swaps)Sell = Yours = Offer = Hit the bid = Give = (Receive in swaps) = ("got lifted" in your Q above Fischer)For the interest rates market as a whole if you hear references to it being well bid, it'll generally be in PRICE terms. However, rate markets can be a little confusing in that it simply comes down to how the product is quoted. Bonds, bond futures, ED's mostly trade on price. IR swaps are quoted with reference to pay fixed yield, so in YIELD terms. Spreads are the same, as they're simply a spread between yields, so if you hear the 2y spread has been smashed down to 60 that means exactly what it says (that the spread between 2y swap and 2y note yields is 60bp). Same thing with curve spreads, basis etc).So for example, if I wanted to pay on 2y swaps and hedge it by buying 2y notes (bonds). I could find an offer in the swap, which I would lift (take) by saying mine. As bonds are generally quoted in price I would also get an offer in the bond which I would lift by saying mine (or I could take it on the screen).
Last edited by
MTPockets on February 7th, 2009, 11:00 pm, edited 1 time in total.