Can the principal and interest of a yield-bearing asset be traded separately?
YT’s price essentially reflects the value of future yield: if the yield you actually receive before maturity is less than the yield implied when you bought it, you’ll lose money as a YT buyer.
Understanding this won’t make me better overnight, but it can help me avoid a few basic mistakes.
Knowing how things work can help you avoid some pitfalls, but it can’t replace position management.
$PENDLE 2.155 (+3.26%)
#PENDLE
This is not financial advice. You decide whether to buy or sell.
YT’s price essentially reflects the value of future yield: if the yield you actually receive before maturity is less than the yield implied when you bought it, you’ll lose money as a YT buyer.
Understanding this won’t make me better overnight, but it can help me avoid a few basic mistakes.
Knowing how things work can help you avoid some pitfalls, but it can’t replace position management.
$PENDLE 2.155 (+3.26%)
#PENDLE
This is not financial advice. You decide whether to buy or sell.