Beep
1 basis point (0.01%).
Example
Goldman Sachs bonds are 3 beeps tighter today. (Translation: The spread between Goldman Sachs bonds are comparable Treasuries has narrowed by 0.03%)
Thursday, April 5, 2007
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Definitions of bond market slang, jargon, and cliches
4 comments:
I thought bps was pronounced "bips"
Beeps and bips mean the same thing.
Your blog is helpful. Question... how do you compare spreads across bonds in different currencies? OAS can't be used, so is z-spread appropriate?
In order to really tell the relative value difference, you have to make an estimation as to the future currency effect. Trading bonds accross different currencies is more about the currency effect than it is about anything else.
www.dismally.com is a first rate blog about currency trading, FYI. Its one of my favorites, and I don't even trade currencies myself.
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