Manage portfolio duration - SWAP vs. Future

[FrankCFA]

Understand both future and interest rate swap can be used to manage portoflio duration. Which one is the popolur way in the real world? Many thanks.

 

[S2000magician]

My guess would be futures because they’re liquid.

 

[Cric12]

In the real world, it’s swaps and even the curriculum mentions that. My guess is that in the real world, market players have multiple dates to hedge and swaps just provide that. You have to keep rolling Futures and Forwards which makes it cumbersome.

 

[ink]

Cric12 wrote:
In the real world, it’s swaps and even the curriculum mentions that. My guess is that in the real world, market players have multiple dates to hedge and swaps just provide that. You have to keep rolling Futures and Forwards which makes it cumbersome.

+1
the curriculum somewhere at the start of the swaps reading talks about its popularity

 

[FrankCFA]

Thanks. But SWAP is lack of secondary liquidity…hmm…