Sentences with phrase «ior option»

IOR Option 2 (available only at issue) If the 10 - year Treasury rate increases by 1.00 % (100bps) or more on your policy's 1st semi-anniversary, 1st anniversary, 2nd semi-anniversary, or 2nd anniversary, your guaranteed interest rate will automatically increase by 1.00 % (100bps).

IOR Option 1 (available only at issue) If the 10 - year Treasury rate increases by 0.50 % (50bps) or more on your policy's 1st semi-anniversary or 1st anniversary, your guaranteed interest rate will automatically increase by 0.50 % (50bps).

Not exact matches

A number of operational features were required to implement such an overnight reverse repo, or ON RRP, facility: It would need same - day settlement; 16 the operation would need to be run predictably, every day, and as late in the day as possible, to give lenders time to bargain with other counterparties using the outside option of investing with the Federal Reserve; 17 an appropriate spread below IOR would be required to ensure that the facility neither induced large changes in the structure of money markets nor lost the ability to support interest rate control; 18 and the operations would need enough unused capacity that lenders could credibly propose to leave borrowers that did not offer an adequate interest rate.19

This theoretical and empirical examination gave the Federal Reserve confidence that it could effectively raise rates when the time came while limiting undesirable effects on financial market structure, and also ensured that additional term tool options were available if the combination of the overnight tools — IOR and ON RRP — was not sufficient to provide interest rate control.21