spot rates vs forward rates

S

saminny

Hi,
I understand how to compute forward rates given a spot rates over future periods of time. However, I am not able to interpret a comparison given a spot curve and forward curve, say for interest rates with 1 month to 15 year maturities. So my question is how do I compare the two curves? What extra information is embedded in forward curve?

S
 
Seek ye the "Understanding the Yield Curve" series of papers by Antti Ilmanen of ol' Solly. I think I may have posted a link in one of the threads here some time in the past. Part I has the answers to your question. Otherwise, Tuckman's "Fixed Income Securities" is very good as well.
 
Quote from Martinghoul:

Seek ye the "Understanding the Yield Curve" series of papers by Antti Ilmanen of ol' Solly. I think I may have posted a link in one of the threads here some time in the past. Part I has the answers to your question. Otherwise, Tuckman's "Fixed Income Securities" is very good as well.
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Thank you. Can you post the link if possible. I cannot find these papers online.
 
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