An investment strategy that attempts to take advantage of the difference in interest rates for short-term and long-term treasury bonds. The investor shorts the 5 year future contracts for these bonds while taking an offsetting long position for 15 to 20 year contracts (or vice versa depending on the circumstances).
Related information about five against bond spread (FAB):
- Five Against Bond Spread (FAB) Definition | Investopedia
A spread in the futures markets created by taking offsetting positions in futures contracts for five-year treasury bonds and long-term (15-30 year) treasury bonds.
- Five Against Note Spread (FAN) Definition | Investopedia
Five Against Bond Spread - FAB. A spread in the ... Futures Contract. A contractual ... Spread. 1. The ... Treasury Bond - T-Bond. A marketable, ... Treasury Note ...
- What is five against bond spread (FAB)? definition and meaning
Definition of five against bond spread (FAB): An investment strategy that attempts to take advantage of the difference in interest rates for short-term and long-term ...
- What is five against note spread (FAN)? definition and meaning
five against note spread (FAN). five against bond spread (FAB) · five hundred dollar rule. Definition. A technique for taking advantage of the difference in interest ...
- What is bond spread? definition and meaning
Mentioned in these terms. five against bond spread (FAB) · high-yield bond spread. Browse by Letter: #ABCDEFGHIJKLMNOPQRSTUVWXYZ ...
- What is Treasury Bond? definition and meaning
U.S. Treasury Securities · U.S. Government Securities · current issue · municipal over bond (MOB) spread · five against bond spread (FAB) · Certificate of ...
- What is against? definition and meaning
selling short against the box · receive against payment · against the box · five against bond spread (FAB) · advise against · covenant against encumbrances ...
- What is long position? definition and meaning
ascending triangle · five against note spread (FAN) · five against bond spread ( FAB) · net short · dedicated short bias · negative carry pair · closing sale · position ...