R16-Swaps, Forwards and Futures

The reading mentions about this equality on Page 300 –
“When a bond portfolio is fully hedged, its value is immunized with respect to changes in yields, stated as
ΔP = (Ns)(ΔS), where ΔP is the change in the value of the bond portfolio and ΔS is the change in the value of the swap for a given change in interest rates and Ns is the notional”

Where does this equality come from? ΔP = (Ns)(ΔS)?

It comes from here:

(Emphasis added.)

ΔP is always zero, the value of the portfolio does not change if it is fully hedged. The point to understand is that N and ΔS change in such a way that ΔP stays constant. If you do it right, at least.

Thanks Magician…

Noted…Thanks DonnieAzz

My pleasure.

“Paying” the basis would mean borrowing the other currency versus lending US dollars, whereas “receiving” the basis implies lending the other currency versus borrowing US dollars.

This is so confusing…How to make sense of this terminology - paying and receiving?
Can someone pls help…

:grin: Trust me… ( For me alone) this is so easy relative to the nightmare called Behavioural Finance. At one point I was convinced this is not for me and I must kiss my charter goodbye. I survived.