A technique used to decide which debt instrument is most profitable to deliver against a futures contract.
Related information about cheapest to deliver:
- Cheapest to Deliver (CTD) Definition | Investopedia
In a futures contract, the cheapest security that can be delivered to the long position to satisfy the contract specifications. The cheapest to deliver security is ...
- Determining the cheapest-to-deliver bonds for bond futures
Sep 10, 2009 ... It obviously wants to give the bond that is the Cheapest-To-Deliver (CTD). ... cheapest-to-deliver, because when interest rates change, another ...
- Cheapest to deliver (CTD) Treasury bond - YouTube
Sep 1, 2008 ... In the last screencast, we noted the role of the conversion factor (CF) is to make the short (in a Treasury bond futures contract) almost indifferent ...
- Cheapest-to-Deliver - Financial Dictionary - The Free Dictionary
The individual units of an underlying asset that would be least expensive for the seller of a futures contract to deliver to the buyer. Some derivatives specify the ...
- Implied repo rate - Wikipedia, the free encyclopedia
Contents. 1 Simplified closed form; 2 Usage. 2.1 Determine the Cheapest To Deliver asset. 3 See also; 4 References. [edit] Simplified closed form. IRR = \left( ...
- An investigation of cheapest-to-deliver on Treasury bond futures ...
It is commonly believed that the cheapest-to-deliver bond on a Treasury bond futures ... an easy rule for cheapest-to-deliver bonds which involves choosing a ...
- Cheapest to Deliver - CTD: Definition from Answers.com
futures contract sellers term for a Treasury security with the highest implied repurchase rate, which is the most profitable issue for the seller to buy.
- 5 Bond futures - YieldCurve.com
The cheapest-to-deliver bond is the one that gives the greatest return from a strategy of buying a bond and simultaneously selling the futures contract, and then ...