Thursday, April 5, 2007


1 basis point (0.01%).

Goldman Sachs bonds are 3 beeps tighter today. (Translation: The spread between Goldman Sachs bonds are comparable Treasuries has narrowed by 0.03%)


Vivek Vish said...

I thought bps was pronounced "bips"

Accrued Interest said...

Beeps and bips mean the same thing.

Anonymous said...

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?

Accrued Interest said...

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. is a first rate blog about currency trading, FYI. Its one of my favorites, and I don't even trade currencies myself.