Phrases with «notional principal»

The phrase "notional principal" refers to the fictional or theoretical amount of money that is being used as a basis for calculating interest or payments in a financial contract or investment. It is a hypothetical amount that helps determine the value of a financial instrument, without actually involving the exchange of that exact sum of money. Full definition

notional principal

Sentences with «notional principal»

After putting conditions, the guidelines said, a participant's dealings in interest rate derivatives would not go beyond an outstanding notional principal amount equivalent to 100 per cent of the book value of the fixed income investments of the insurance company under the policyholders fund, it said. (policybazaar.com)
Currency Swaps A currency swap is a financial instrument that helps parties swap notional principals in different currencies and thus pay interest payments on the received currency. (investopedia.com)
ICE offers Eris Exchange credit index derivatives as cash settled futures with $ 100,000 notional principal, whose value represents a basket of credit default protection on the entities in the index. (marketswiki.com)
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Phrases with «notional principal»

Sentences with «notional principal»

See also