by Gabe Velazquez, Online Trading Academy
Online Trading Academy Article of the Week
One asset category that is not very well understood is what we refer to as the credit markets. In the futures market, these encompass all debt instruments such as U.S. Treasury Bills, Notes, and Bonds, and are not limited to derivatives of debt issued by the U.S. treasury. The German debt market can also be traded in the U.S. through most futures brokers on the Eurex exchange. These derivative instruments come with funny names like Schatz, Boble, and Buxl and, finally, the Bund. The different names in all debt instruments are there simply to differentiate the short, medium and long term maturity dates.