Thursday, November 15, 2007

Lift

To purchase a bond at its offered price, especially without bidding back.

E.g. "I got lifted on 10mm GNR 2006-14 A at E+20."

This means that the trader had owned $10 million of this GNMA CMO, and sold it to an investor at a spread to the Eurodollar curve of 20bps.

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