cheapest-to-deliver

Definition of "cheapest-to-deliver"
  1. The selection of a class of bonds or notes that are most economically beneficial to deliver against an expiring futures contract due to their high implied repo rate
How to use "cheapest-to-deliver" in a sentence
  1. In the bond market, traders often look for the cheapest-to-deliver option.
  2. The cheapest-to-deliver note was selected for delivery against the expiring futures contract.
  3. Economic efficiency can be enhanced by choosing the cheapest-to-deliver bond.
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