Hi David, Could you please explain a little bit about why the CTD system will favor low coupon and long maturity bond when the yield is greater than 6%? Thanks a lot!
Hi jcjc0602, please see http://www.bionicturtle.com/forum/threads/highest-conversion-factor.5569/#post-15926 i.e., search "cheapest to deliver," this has been much discussed. Thanks!
