z spread and nominal spread

moxnguyen · April 10, 2018, 6:27am

Please help explain why

z spread > nominal spread => upward sloping yield curve

z spread < nominal spread => downward sloping yield curve

Thank you very much

moxnguyen · April 10, 2018, 9:43am

Anyone help please

S2000magician · April 11, 2018, 6:26am

The algebra can be fairly complicated.

Will an algebraic proof really help solidify the idea for you?

moxnguyen · April 11, 2018, 7:11am

Thanks S2000

I just want to find any logic here to remember it easily rather than learning by heart

S2000magician · April 11, 2018, 4:25pm

You’re welcome.