Billions of dollars of new bonds are issued into the global debt markets and traded in the secondary markets every single day, once those bonds have been issued. In this video, Nigel explains the benchmark curves which are used in global debt markets. Each benchmark curve is the foundation for bond pricing in its relevant market. In particular the ‘US treasury benchmark curve’, ‘Euro benchmark swap rate curve’ and the ‘Sterling benchmark gilt curve’.
Key learning objectives:
What does the yield curve tell us?
Identify and explain each of the key benchmark curves
How can we identify the credit benchmark to reference in pricing a new Sterling bond?