Hedging interest rate risk of default-risky bonds

matal · October 27th, 2009, 2:52 am

Looking for references to the topic of how to hedge a default-risky bond's interest rate exposure.Any links / pointers / articles appreciated.Must be on people's mind now with many expecting rates to back up.

list · October 27th, 2009, 1:50 pm

It could be make sense to by put on risky bond.

Martinghoul · October 27th, 2009, 2:49 pm

Buy them risky bonds on asset swap...

rayso33 · October 29th, 2009, 9:42 am

But don't forget the major risk is the credit spread on asset swap.