Infrastructure and Interest rate guarantee: Difference between pages
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(IRG). | |||
This is an option on a specified short-term interest rate for a specified notional loan or deposit. | |||
A borrower normally wants a guarantee that their hedged rate payable will be 'no higher than' a specified worst case rate. | |||
A lender or investor normally wants a guarantee that their hedged rate receivable will be 'no less than' a specified worst case rate. | |||
== See also == | |||
* [[Hedging]] | |||
* [[Interest rate]] | |||
* [[Interest rate option]] | |||
* [[Option]] | |||
==See also== | |||
*[[ | |||
*[[ | |||
*[[ | |||
*[[ | |||
Revision as of 15:09, 22 August 2013
(IRG).
This is an option on a specified short-term interest rate for a specified notional loan or deposit.
A borrower normally wants a guarantee that their hedged rate payable will be 'no higher than' a specified worst case rate.
A lender or investor normally wants a guarantee that their hedged rate receivable will be 'no less than' a specified worst case rate.