s******1
发帖数: 57 | 1 题目：
what does it mean when a treasury bond trade"on special"? if you own such a
bond ,how can you profit from the fact that it is "on special"? | d******e
发帖数: 285 | 2 It means the bond is hot in repo market. To make money, you can repo out
the bond, get cash collateral in, lend out the cash at benchmark rate (e.g.
Libor or fed open), make some extra interest accrue on your side. When you
need to unwind the position, you get the cash back, collect the interest,
then pay the cash back to the bond borrower, pay him a fee, and get your
bond back. When a bond is special, the fee you pay to bond borrower should
be less than your interest income, that's how yo
【在 s******1 的大作中提到】
: 题目：
: what does it mean when a treasury bond trade"on special"? if you own such a
: bond ,how can you profit from the fact that it is "on special"?
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