1. Fixed-Income markets include publicly traded securities (such as commercial paper, notes and bonds) and non-publicly traded instruments (such as loans and provate securities)
2. Inflation-linked bonds pay a return that is directly linked to the consumer-price index and adjust the principal for inflation. In this way both coupon and principal are adjusted for inflation.
3. A negative rebate rate indicates that security is hard to borrow Rebate rate = Collateral Rate - Sec Lending Rate
4. In securities lending, if the securities loan is initiated for financing purposes, the lending fee is negative
5. The Rebate Rate is the portion of the collaterals earning rate that is repaid to the security borrower by the security lender
6. Horizon Matching
- Short Term - Cash flow matching
- Long-Term - Duration Matching