Search results
Results from the WOW.Com Content Network
A basis swap is an interest rate swap which involves the exchange of two floating rate financial instruments. A basis swap functions as a floating-floating interest ...
These are over-the-counter (OTC) products and commonly referred to as basis swaps. [2] (Fixed v Floating) Cross-Currency Swaps: are a common customization of the benchmark product, often synthesized or hedged by market-makers by trading a float v float XCS and a standard interest rate swap (IRS) to convert the floating leg to a fixed leg.
An accreting swap is used by banks which have agreed to lend increasing sums over time to its customers so that they may fund projects. A forward swap is an agreement created through the synthesis of two swaps differing in duration for the purpose of fulfilling the specific time-frame needs of an investor. Also referred to as a forward start ...
As OTC instruments, interest rate swaps (IRSs) can be customised in a number of ways and can be structured to meet the specific needs of the counterparties. For example: payment dates could be irregular, the notional of the swap could be amortized over time, reset dates (or fixing dates) of the floating rate could be irregular, mandatory break clauses may be inserted into the contract, etc.
The credit spreads for 5 yr. bonds started 1998 around 40 basis points in Britain and near 15 basis points in Germany. As news of problems in the Hedge Fund industry and potential credit unwinds began to permeate the market, the British spread exploded out to 140 basis points in October of '98 while the German spread managed only a meager move ...
In swaptions, or options on interest rate swaps, the market is also pointing to higher 10-year rates, although not as straightf ... The cost of that 25-basis-point strike climbed to 23.13 bps on ...
An overnight indexed swap (OIS) is an interest rate swap (IRS) over some given term, e.g. 10Y, where the periodic fixed payments are tied to a given fixed rate while the periodic floating payments are tied to a floating rate calculated from a daily compounded overnight rate over the floating coupon period. Note that the OIS term is not ...
It's hard to beat an ice-cold soda with popcorn at the movies or at a picnic on a hot day. But when sugary pop becomes a habit rather than a treat, it might be time to cut back and look for some ...