Sentences with phrase «dollar swap rate»

In the second step, the model estimates the appropriate discount rate for the security, which in the case of RMBS is expressed as a trading margin — the difference between the yield on the RMBS and the Australian dollar swap rate for the tenor corresponding to the WAL of the RMBS.

Not exact matches

The USD ISDAFIX is a valuation tool used for dollar - denominated interest - rate swaps of a range of maturities.

International banks active in the Australian market are generally already actively clearing Australian dollar - denominated interest rate swaps via offshore entities that participate in LCH.Clearnet's London - based SwapClear service or CME Clearing in the United States.

In response, the Fed reduced the federal funds rate to essentially zero by mid-December, instituted swap lines to provide dollar liquidity to foreign central banks, added new liquidity facilities to target specific sectors of the shadow banking system and began to expand its balance sheet through asset purchases.

The Company may enter into fair value hedges, such as interest rate swaps, to reduce the exposure of its debt portfolio to changes in fair value resulting from changes in interest rates by achieving a primarily U.S. dollar LIBOR - based floating interest expense.

As the RBA's operational target for monetary policy and the reference rate for OIS (overnight index swap) and other financial contracts, the cash rate is the risk - free interest rate benchmark for the Australian dollar.

Ranked # 1 in the following five categories: - Interest rates, Inflation options overall - Interest rates, Inflation options for US Dollar - Interest rates, Inflation options for Euro - Interest rates, Inflation swaps for US Dollar - Foreign exchange, Forex swaps in Euro / sterling

This fall in spreads was largely a result of the increase in Australian dollar issuance by non-Australian borrowers into the Japanese retail market (the uridashi market) which boosted demand to receive an Australian dollar interest rate under cross-currency swap agreements.

The bubble was a combination of (a) teaser rates on option ARMs which were like financial time bombs, (b) liar loans in which the rules of good mortgage underwriting (20 % down, 28/36 ratios) went out the window, (C) people at rating agencies who decided that if one pools enough junk loans into one bond, it's magically AAA, and (D) Credit default swaps which encouraged these bad loans, and when they collapsed a number of people walked away with billions of dollars.

This means that in a swap between euros and dollars, a party that has an initial obligation to pay a fixed interest rate on a euro loan can exchange that for a fixed interest rate in dollars or for a floating rate in dollars.

Large bond investors not restricted by the FPR like insurance companies have «asset swapped» into foreign issuers by purchasing their bonds directly and using currency and interest rate swaps to convert the cash flows to Canadian dollar.

Cable, also known as is a term used in slang language among Forex traders to indicate the swap rate between British Pound Sterling and U. S. dollar.

2) Wall Street spends millions of dollars doing credit checks and filling out ISDA agreements before entering swap transactions with customers... and yet, no one blinked at the idea of selling a subprime borrower a receiver swap — allowing them to pay floating instead of fixed rates on their mortgage.