Re: forward swap rate
Posted by
Ferdinando M. Ametrano-2 on
URL: http://quantlib.414.s1.nabble.com/forward-swap-rate-tp8228p8230.html
stefano sampietro wrote:
> What is the meaning of the third parameter of qlIborIndex ("Tenor"),
> is it the payment frequency of the cash flows of the swap?
No. It's the tenor of the Euribor/Libor index, as in Euribor 6M.
There's nothing about swap in the IborIndex definition
> Why the final result from qlVanillaSwapFairRate (i.e. the forward swap rate)
> does not change if I change such "Tenor" parameter? (I would expect little changes...)
if you're using the same curve for IborIndex forwarding and for swap's
cashflows discounting, then the floating leg frequency (which is ruled
by the IborIndex tenor) is irrelevant for the so-called floating leg
telescopic property
ciao -- Nando
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