Interest Rate Futures
So the text says that if we expect -
Interest rates to go up, we under hedge using Int Rate Futures.
Can someone explain the rationale behind this? Rates going up implies that prices will drop, shouldn’t we completely/overhedge this?
Available Live or Online, our classes are taught by CFA® charterholders that have a history of helping candidates pass. Take your studies seriously with a live class from Schweser.