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Hello LuckyMan, A basis rate swap is a type of swap in which two parties swap variable interest rates based on different money markets, and this is usually done to limit interest-rate risk that a company faces as a result of having differing lending and borrowing rates. For example, a company lends money to individuals at a variable rate that is tied to the London Interbank Offer (LIBOR) rate, but they borrow money based on the Treasury Bill rate. This difference between the borrowing and lending rates (the spread) leads to interest-rate risk, so by entering into a basis rate swap, where they exchange the T-Bill rate for the LIBOR rate, they eliminate this interest-rate risk. |
List of Gurus
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Heng Kim 2019-09-24 03:46:59Hi PrettyWoman, The job market is the market in which employers search for
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Anton Luyten 2019-09-11 10:12:45Hello Fluffy, A harami cross is a Japanese candlestick pattern that consists
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Chaoxiang Lee 2019-09-07 11:28:32Hi Maria, A caplet is a kind of call option based on interest rates. The
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Apinya Kamon 2019-09-04 01:56:33Hello ForexGuy, A false market occurs when prices are manipulated and impacted
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Tom Burke 2019-08-31 08:08:12Hello LuckyWoman, The yearly probability of living is determined by consulting
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Dara Madee 2014 - 11 - 30Hello Lucky woman, It would be preferable that the risk was not more than 1-2%
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Dara Madee 2015 - 01 - 11
Hi ForexGuy, Fundamental analysis is a technique that attempts to determine a
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Heng Kim 2016 - 11 - 01
Hi Maria, A descending channel or downtrend is the price action contained
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Jun Wang 2015 - 05 - 19
Hello Maria, A technical momentum indicator that compares the magnitude of
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Goro Yang 2017 - 03 - 07Hello Peter, "Beep" is financial industry jargon for basis point,
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Heng Kim 2019 - 09 - 24
Hi PrettyWoman, The job market is the market in which employers search for
Read more -
Anton Luyten 2019 - 09 - 11
Hello Fluffy, A harami cross is a Japanese candlestick pattern that consists
Read more -
Chaoxiang Lee 2019 - 09 - 07
Hi Maria, A caplet is a kind of call option based on interest rates. The
Read more -
Apinya Kamon 2019 - 09 - 04
Hello ForexGuy, A false market occurs when prices are manipulated and impacted
Read more -
Tom Burke 2019 - 08 - 31
Hello LuckyWoman, The yearly probability of living is determined by consulting
Read more