The Solomon Brothers Arbitrage Desk and the Mortgage Guys

The bond bible is called the yield book by homer lebewitz. The genius of these people was hat they figured out that there's a difference between buying a product, corn, bonds, soibens, gold, buying it to day, or buying it three or six months from now in the futures or forward market. So simple example as this. Let's say you have a bond, and a hundred has a five % coupon, so you make five % per year. And let's say you can borrow money at two % per year,. Well that means you're going to make three points per year oni that bond. Forget the price movement d by making five on the coupon