Re: 答复: How to fix future (unknown) coupons of a FRN?

Posted by Magnus Nystrom-3 on
URL: http://quantlib.414.s1.nabble.com/How-to-fix-future-unknown-coupons-of-a-FRN-tp16484p16497.html

The market qoutation convention for pricing frn is a closed form formula
which requires 1) all periods are of equal length  and 2) the rate for
future coupons is fixed. That is probably why the 30360 convention comes
into play after next coupon i.e. it does not mean that the daycount is
changing.

Regards,

Magnus Nystrom
Algorithmica Research AB

> -----Original Message-----
> From: Peter Caspers [mailto:[hidden email]]
> Sent: Friday, April 17, 2015 11:51 AM
> To: MDecau
> Cc: QuantLib users
> Subject: Re: [Quantlib-users] 答复: How to fix future (unknown) coupons of
a
> FRN?
>
> Oh my good. If this is the convention, you would certainly need a special
pricing

> engine for this. Who comes up with such things?
> Peter
>
>
> On 17 April 2015 at 08:50, MDecau <[hidden email]>
> wrote:
> > Thank you both for your valuable answers. I worked on them yesterday.
> >
> > Cheng, I understood what was your idea and I tried to implement it,
> > but I did not succeed, probably because I'm not (yet) familiar enough
> > with Quantlib internal design to modifiy it.
> >
> > And Peter, I did your first method (with gearing = 0 and spread =
> > today's fixing), which was a smart workaround. It works well. But I
> > still don't get the exact same coupons as Bloomberg: Bloomberg changes
> > the day counting convention when it fixes its rates. For example, in
> > my screenshot it has an Actual 360 convention until the 17/04/2015,
> > and then it becomes a Thirty 360 convention. I cannot see any reason for
that.

> > I did not have to try your other ideas, despite that the last one
> > seemed also a good way of doing it.
> >
> > Thank you again
> > Marin
> >
> >
> >
> > --
> > View this message in context:
> > http://quantlib.10058.n7.nabble.com/How-to-fix-future-unknown-coupons-
> > of-a-FRN-tp16484p16493.html Sent from the quantlib-users mailing list
> > archive at Nabble.com.
> >
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