Re: Missing USDLibor6M Actual/360 fixing

Posted by MonkeyMan-3 on
URL: http://quantlib.414.s1.nabble.com/Missing-USDLibor6M-Actual-360-fixing-tp7050p7054.html

Luigi Ballabio <luigi.ballabio <at> gmail.com> writes:
 
> It's a calendar mismatch.  USD libor is fixed in London and uses a
> calendar which joins US and UK holidays.  

Makes sense. So I changed my date calculation to this:

Calendar calendar = UnitedStates();
Date todaysDate(29, April, 2005);
Integer fixingDays = 2;
JointCalendar usdgbpCalendar = JointCalendar(UnitedStates(), UnitedKingdom());
Date settlementDate = usdgbpCalendar.advance(todaysDate, fixingDays, Days);
settlementDate = usdgbpCalendar.adjust(settlementDate);

Then I also changed my rate helpers for deposits and swaps to have the joined
calendar:

boost::shared_ptr<RateHelper> d1w(new DepositRateHelper(
            Handle<Quote>(d1wRate),
            1*Weeks, fixingDays,
            usdgbpCalendar, Following,
            true, depositDayCounter));

and

boost::shared_ptr<RateHelper> s2y(new SwapRateHelper(
            Handle<Quote>(s2yRate), 2*Years,
            usdgbpCalendar, swFixedLegFrequency,
            swFixedLegConvention, swFixedLegDayCounter,
            swFloatingLegIndex));

And my code doesn't blow up. One last question, though. When I'm building a new
swap to price do I need to change both the fixed and floating calendars or only
the floating calendar. Like this:


Schedule fwdFixedSchedule(fwdStart, fwdMaturity,
                                  Period(fixedLegFrequency),
                                  calendar, fixedLegConvention,
                                  fixedLegConvention,
                                  DateGeneration::Forward, false);
Schedule fwdFloatSchedule(fwdStart, fwdMaturity,
                                  Period(floatingLegFrequency),
                                  usdgbpCalendar, floatingLegConvention,
                                  floatingLegConvention,
                                  DateGeneration::Forward, false);

It seems that since the standard is for the fixed leg to be unadjusted, I would
just use the joined calendar for the floating leg, but I may be confusing
conventions.

Thanks for your help. I have been flailing around looking at day count
conventions and in all the wrong places.

Monkey


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