What does Takeout and Putup mean?
What does Takeout and Putup mean?
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the_brass_bottle · External communityPost link
External question — Personal Finance Stack Exchange
Author: the_brass_bottle
Original post: https://money.stackexchange.com/questions/161088
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What does takeout and putup values mean in fixed income trade and how would you interpret these values?
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D Stanley · External communityPost link
External answer — Personal Finance Stack Exchange
Author: D Stanley
Original post: https://money.stackexchange.com/a/161093
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Bloomberg usually has pretty good help and may define those terms in its online help.
My
guess
based on the screenshot you show is:
The takeout/putup number is the difference in NPV (how much you would get/have to pay at settlement) between the two bonds. If you buy $1,000 notional of one of these bonds and sell the same amount of the other, you will "take out" $16,037 (or vice verse, you would have to "put up" an additional $16,037 to buy the more expensive one).
Note that it doesn't directly say anything about the quality of those bonds (a cheaper bond is not always "better") just shows the difference needed to settle the trade.
I have never seen these terms used in an analytic context - they may be specific to Bloomberg or a trading term. But the main thing to notice is that it is the difference in NPV between the two bonds.
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: the_brass_bottle Source score (net votes, not local likes): 0 Original post: https://money.stackexchange.com/questions/161088 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. What does takeout and putup values mean in fixed income trade and how would you interpret these values?
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