Bootstrapping

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Bootstrapping

Creating a theoretical spot rate curve using one yield projection as the basis for the yield of the next maturity. Bootstrapping follows the work of Efron. It involves a Monte Carlo approach.

Bootstrap

1. To start a company with personal finances rather than through loans or venture capital. This is obviously a large risk to the entrepreneur as he/she has no recourse should the business fail. On the other hand, it allows the entrepreneur to maintain control of the business and has the potential to be very successful. It is famously said that Ross Perot established Electronic Data Systems with $1,000 in personal savings; he maintained complete control of the company until its IPO six years later. This is an example of bootstrapping. See also: Seed money.

2. To calculate the yield curve on a zero-coupon Treasury bill. Because the U.S. Treasury does not issue new T-bills constantly, bootstrapping is used to create a yield curve by filling in the missing yields on the T-bills.
References in periodicals archive ?
Instead he's dragged the club up by the boot straps and given every one a nasty shock.
M&S, which has managed to pick itself up by the boot straps, is about to launch a fresh strategy led by weird and wonderful technology.
Yet often, for all that Gerrard rolled up his sleeves to lead by example, dragging his side up by their boot straps and demanding the men around him showed as much passion as him, the doubts were apparent - too many players not good enough for the Liverpool shirt.
Fergie has pulled herself up by the boot straps,paid off her debts and earned respect.
Shadow Ops: Red Mercury will grab gamers by their boot straps and toss them into a hyper-intense world of heroic combat, stealth infiltration and Special Forces intrigue in a battle to save the world from nuclear holocaust," said Jean-Philippe Agati, senior vice president and general manager of Atari's Los Angeles studio.
We couldn't sink any lower and people have worked so hard to pull this club up by its boot straps.
Down-to-earth Aussie has dragged Jaguar up by its boot straps this year with some blistering performances in qualifying.
UniTrends recently announced Solar Shield(TM), a complete crash recovery system for Solaris allowing for full bare metal recovery without re-installing the operating system and carefully preserving device drivers, security patches, file system sizes and mount points, permissions and kernel boot straps.
Pocket-sized West Ham link man Britton was another who declared his determination to haul Swansea up by the boot straps.
CARDIFF boss Lennie Lawrence knows all about hauling sides up by the boot straps - he did at Charlton and Middlesbrough.