Replication NDF bond

[Rhydanne]

Hi all,

This is not a question directly related to FRM per se.
I have a non deliverable forward bond instrument and I am wondering how to replicate it with a TRS or a CLN, a repo will probably needed.
If anyone has any ideas, your comments are welcome!

Thanks in advance

 

[ShaktiRathore]

According to my brief idea,
TRS is a swap an agreement to exchange the total Cash flows associated with the instrument with a floating rate or fixed rate. You can long a T-bill or some floating rate instrument. Enter into TRS swap with counter-party to get cash flows associated with non deliverable forward bond instrument and exchange with the floating rate on the floating rate instrument u own.IN this way you can own non deliverable forward bond instrument virtually at the expense of repo rate.


thanks