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Re: Calcualting Bond Price from The ASW (asset swap) spread

Posted by Peter Caspers-4 on May 14, 2016; 10:18am
URL: http://quantlib.414.s1.nabble.com/Calcualting-Bond-Price-from-The-ASW-asset-swap-spread-tp17428p17454.html

Hi Zahar,

no worries, they are close :-)

https://en.wikipedia.org/wiki/Feast_of_Saints_Peter_and_Paul

As it stands, with QuantLib you can use FX Forwards to strip a FX curve, but not Cross Currency Swaps. If you have USD collateral you could bootstrap a USD OIS / FedFund curve and then use EUR-USD FX Swaps to build a EUR-USD FX curve that discounts EUR cashflows under USD collateral. However FX Forwards are usually only used out to 1 or 2 years maybe for this purpose, after that Cross Currency Swaps are more common. Since QuantLib doesn’t have them currently, you’d need to read FX Forward rates from a bootstrapped curve you get from another source (like Bloomberg or some other system you have access to) and feed them as artificial FX Forward quotes into the QuantLib FX swap rate helpers. Or you feed the whole curve as discount factors or zero yields directly into QuantLib without any bootstrap, of course. We really need to add the missing cross currency stuff to QuantLib soon I guess.

Kind Regards
Peter

> On 13 May 2016, at 15:05, Zabed <[hidden email]> wrote:
>
> my apologies Peter, sorry about writing the name wrong.
>
> Thanks in advance
> Zahar
>
>
>
>
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restrictions. Mobile Device Manager Plus allows you to control only the
apps on BYO-devices by containerizing them, leaving personal data untouched!
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