CFA Level 3 | Fixed Income: Carry Trade with Bond Futures

[@gargijain8553]

Very nicely explained..Thanks Fabian.

[@FabianMoa]

You are welcome!

[@justingilead2055]

You say we need to go long on the 10 y gov bond to earn the carry in a steepening yield curve scenario, but does it mean that we also need to sell the 3 month sofr or do we just only trade the 10y outright?

[@FabianMoa]

Need to long the 10y gov bond FUTURES

[@moneyness1]

Fabian, for lv 3 CBT exam, will the format more or less same as practice questions on CFA website? I found it is very inconvenient to scroll up and down to find material in the case study and to focus on what exactly is asked in the question. I don't find this issue in the paper exam

[@FabianMoa]

For the second session (vignettes), I was told it would be a split screen, vignette on the left and questions on the right. You can scroll each side independently. For the first session (constructed response), not really sure how it will look like. I envision it as short paragraph then followed by question, then a small textbox to enter your answer, then proceed to the next part of the case, and repeat... I don't have access to the practice questions on CFA website, so not too sure how it looks like. Apologies that I can't provide more info, Dave.

[@chaitanya1472]

the yield at 2:08 for -ve carry should be 1.05 instead of 1.01?

[@FabianMoa]

You're right. 😱