Sentences with phrase «term interest rate swap»

Academics get rid of this problem by assuming you can buy a very long - term interest rate swap.

Not exact matches

A: No, I think that when interest rates are constrained by the zero bound, it is appropriate for central banks to look, if conditions warrant, for other ways to be expansionary and swapping short term assets for long term assets or what is the equivalent of a liquidity trap, printing money and buying long term assets, can be a reasonable solution.

For example, an interest rate swap is a derivative whereby two parties exchange, or «swap,» interest payments on a bond; one side might get a constant 3 percent each payment period, while the other gets the LIBOR rate (a benchmark rate that some banks charge each other for short - term loans).

All futures and options on futures trading - which includes such product areas as short - term interest rate and swap products, bonds, equity options, stock indexes, commodity and FX instruments - are transacted on a single electronic trading platform, LIFFE CONNECT, with central margining and clearing provided by ICE Clear Europe.

The summary of terms states: «The rate of interest payable on a loan will be at a fixed rate per annum equal to the aggregate of: (a) the Margin; and (b) the Sterling 7.5 year swap rate at the date of disbursement.»

Total - return swaps involve only an exchange of the returns on their underlying indices (namely, a stock index against a short - term interest - rate index) at a pre-determined frequency.

Under Operation Twist, enacted September 21, 2011, the Fed committed to swapping $ 400 billion short - term Treasury securities for long - term Treasuries and influence lower interest rates and investor stability.

The collateral and leverage are similar; the main difference is that Deerfield uses swaps and floors to manage interest rate risk, and Annaly uses longer repo terms (1 - 3 years) than Deerfield (0 - 3 months).

The Fund invests primarily in real return instruments, including short - and intermediate - term TIPS, as well as floating - rate loans, asset - backed securities (ABS) and commercial mortgage - backed securities (CMBS) where interest payments on the floating - rate loans and ABS / CMBS are swapped for those based on changes in the U.S. Consumer Price Index (CPI).

Since short - and intermediate - term TIPS, as well as the floating - rate loans and the ABS / CMBS swapped for CPI, receive the same inflation adjustment as other, longer - dated inflation - linked securities, they may be able to provide similar protection from inflation, but with less interest rate risk.

The term is commonly used for deposits, foreign exchange spot and forward transactions, interest rate and commodity swaps, options, loans and fixed income instruments such as bonds.

If you're worried about interest rates, swap out some of the bond ETF for XSB, the short - term bond ETF

mREITs typically manage and mitigate risk associated with their short - term borrowings through conventional, widely - used hedging strategies, including interest rate swaps, swaptions, interest rate collars, caps or floors and other financial futures contracts.

For an interest - rate swap that is not changed or terminated before maturity, the value of the swap — positive or negative — during the term to maturity is irrelevant, as it will always be nil at maturity.

Because these cash flows occur throughout the life of the loan, they are computed using the longer term, 10 - year swap interest rate, as it represents a forecast of future short - term rates likely to be realized over the life of the loan.

Further, the Fed's long - term interest rate policy has pushed the 10 - year swap rate below 3 percent, increasing the monthly benefits received from a reverse mortgage (Figure 1).

When you insure long - term risks (such as mortality) or issue financial derivatives (such as interest rate swaps or contracts on the future value of the S&P 500) the risks are not easy to understand.

The term «customer review» may not generate happy memories for victims of the earlier interest rate swap misselling scandal.

mREITs typically manage and mitigate risk associated with their short - term borrowings through conventional, widely - used hedging strategies, including interest rate swaps, swaptions, interest rate collars, caps or floors and other financial futures contracts.

Interest rate swaps (IRS) are the other key interest rate products for BGC where a close relationship between brokers trading short and long - term products facilitates a history of delivering first - class Interest rate swaps (IRS) are the other key interest rate products for BGC where a close relationship between brokers trading short and long - term products facilitates a history of delivering first - class interest rate products for BGC where a close relationship between brokers trading short and long - term products facilitates a history of delivering first - class service.

Further, the Fed's long - term interest rate policy has pushed the 10 - year swap rate below 3 percent, increasing the monthly benefits received from a reverse mortgage (Figure 1).