Re: yield curve todays date and spot date when MTM

Posted by Luigi Ballabio on
URL: http://quantlib.414.s1.nabble.com/yield-curve-todays-date-and-spot-date-when-MTM-tp676p677.html


On Aug 17, 2011, at 6:46 PM, alex wrote:

> in a swap valuation example there's a line
>
> Integer fixingDays = 2;
>
> Date todaysDate = calendar.advance(settlementDate, -fixingDays, Days);
>
> does it mean that when i want to value (MTM) today a swap which has  
> already started in the past I must use the yield curve bootstrapped  
> 2 days ago?
>

No, the example is rather backwards; it should read

Integer settlementDays = 2;
Date settlementDate = calendar.advance(todaysDate, settlementDays,  
Days);

It just means that the swap is settled two days from today, so the  
curve (which you bootstrap today, regardless of when the swap started)  
will be discounting to that date.

Luigi



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