Difference between MMD Index and SIFMA index?

ChrisHenderson · August 28th, 2007, 5:27 pm

What is the difference between the MMD index and the SIFMA index?

safebet · October 30th, 2007, 11:47 am

MMD is a natural triple-A state GO yield curve produced by Thomson. SIFMA is an average of weekly rates on variable-rate demand notes (VRDNs, also knows as VRDOs). There is a liquid fixed-for-floating swap interbank market in this rate, giving rise to a term structure of SIFMA par swap rates comparable to Libor swap curves in the taxable market. Some muni investors hedge their tax-exempt yield risk in the cash market using SIFMA swaps.