Warning: Creating default object from empty value in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/plugins/independent-core/admin/ReduxCore/inc/class.redux_filesystem.php on line 29 Cash Market Premium – Fincyclopedia
[wpdreams_ajaxsearchpro id=44 ]
  • Thursday, June 19, 2025
  • The Financial Encyclopedia
[wpdreams_ajaxsearchpro id=43 ]

Derivatives

  Derivatives   |   Terms
  • 631
  • June 17, 2021
[addtoany]
Notice: Undefined variable: myString in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/themes/independent/template-parts/post/content-single.php on line 41

Cash Market Premium

The price of credit risk as traded in the cash market using asset swaps. In other words, it is the additional amount paid or received when buying or selling an underlying bond (of an asset swap) than to do that in a direct way (in the market).

It is used as an input in calculating the CDS bond basis, i.e., difference between the synthetic credit risk premium (the price of credit risk quoted in a credit default swap) and the cash market premium.


[related_posts_by_tax title="See also" posts_per_page="10" taxonomies="post_tag"]

[pt_view id=78ecc7bubm]
[su_box title="Watch on Youtube" style="soft" box_color="#f5f5f5" title_color="#282828" radius="2" class="" id=""][su_row class=""][su_column size="1/1" center="yes" class=""] [/su_column][/su_row][/su_box]

Latest Terms

Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments

    Leave Your Comment

    Your email address will not be published.*