TY - JOUR T1 - Credit Gadgets JF - The Journal of Fixed Income SP - 65 LP - 72 DO - 10.3905/jfi.2003.319340 VL - 12 IS - 4 AU - Jouahn Nam AU - Alan L. Tucker AU - Jason Z. Wei Y1 - 2003/03/31 UR - https://pm-research.com/content/12/4/65.abstract N2 - A credit gadget is a theoretically cost-free portfolio of pure discount securities accommodating a desired exposure to a particular region of the local credit spread surface. The local credit spread surface is a graphical representation of forward credit spread term structures and forward credit spread skews. Fixed-income investors can use the credit gadget introduced here to hedge forward credit spreads and skews, or to speculate on a particular region of the local credit spread surface while obviating exposure to other regions. ER -