Can someone please explain when is DTS used, and why is it used instead of just spread duration, in words other than what the curriculum states (spread changes are proportional rather than absolute).
I don’t understand the sentence in the bracket hence maybe thatswhy I’m struggling with this concept.
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yield moves from 10% to 12% -
change is 2% absolute
change is 20% relative
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Not the CFAI material, but covers the concept of DTS well. Helped me in understanding.