Back-to-back loan: Difference between revisions
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1. | 1. ''Lending and borrowing - hedging.'' | ||
A mechanism under which two parties lend each other matching sums on matching terms in different currencies or on a different interest rate basis, with the objective of obtaining a cost advantage or of hedging currency or interest rate risk. | A mechanism under which two parties lend each other matching sums on matching terms in different currencies or on a different interest rate basis, with the objective of obtaining a cost advantage or of hedging currency or interest rate risk. | ||
2. | |||
2. ''Lending and borrowing.'' | |||
A similar arrangement undertaken for any other purpose. | A similar arrangement undertaken for any other purpose. | ||
== See also == | == See also == | ||
* [[Currency risk]] | |||
* [[Hedging]] | |||
* [[Interest rate risk]] | |||
* [[Loan relationship]] | * [[Loan relationship]] | ||
* [[Unbacked]] | |||
[[Category:The_business_context]] | |||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 16:45, 10 November 2021
1. Lending and borrowing - hedging.
A mechanism under which two parties lend each other matching sums on matching terms in different currencies or on a different interest rate basis, with the objective of obtaining a cost advantage or of hedging currency or interest rate risk.
2. Lending and borrowing.
A similar arrangement undertaken for any other purpose.
