The European Bond Basis: An In-Depth Analysis for Hedgers, Speculators, & Arbitrageurs

This text provides a comprehensive discussion of the relationships between the various European bond markets and their respective bond futures contracts, called, "the basis". It covers all the major European markets, such as the UK, France, Germany, Italy and Belgium. Various analytical tools and approaches are described, so that professional traders and portfolio managers can meet their risk management and trading needs. Specific topics include; the forces that drive futures prices and the basis relationship, hedging with bond futures contracts, and the application of bond futures in multiple-currency portfolio management.