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. |
Hi PrettyWoman, The job market is the market in which employers search for
Read moreHello Fluffy, A harami cross is a Japanese candlestick pattern that consists
Read moreHi Maria, A caplet is a kind of call option based on interest rates. The
Read moreHello ForexGuy, A false market occurs when prices are manipulated and impacted
Read moreHello LuckyWoman, The yearly probability of living is determined by consulting
Read moreHello ForexGuy, A canceled order is a previously submitted order to buy or
Read moreHello LuckyWoman, A dirty price is a bond pricing quote referring to the price
Read moreHello Fluffy, An increase in price and trading volume in a particular sector
Read moreHello Maria, Dark money refers to the funds donated to nonprofit organizations
Read moreHi LuckyWoman, QQQQ was the previous ticker symbol for the Nasdaq 100 Trust,
Read moreHi PrettyWoman, The job market is the market in which employers search for
Read moreHello Fluffy, A harami cross is a Japanese candlestick pattern that consists
Read moreHi Maria, A caplet is a kind of call option based on interest rates. The
Read moreHello ForexGuy, A false market occurs when prices are manipulated and impacted
Read moreHello LuckyWoman, The yearly probability of living is determined by consulting
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