Kuwait Inter Bank Offer Rate and Redemption: Difference between pages

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imported>Doug Williamson
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In theory there is an Interbank rate in Kuwait, sometimes known as KIBOR.
The purchase and cancellation of outstanding securities through a cash payment to the holder.


However, KIBOR is an irrelevance for most corporate treasury activities.
More specifically, the paying off or buying back of a debt security by the issuer on or before its stated maturity date.  The redemption can be made at par value or at a premium, as is the custom when exercising a call option.


 
== See also ==
All KWD bank debt is priced as a spread over the Central Bank Discount Rate ("CBK"), which is changed by unilateral decision of the central bank. 
* [[Call option]]
 
* [[Par]]
CBK-based debt reprices immediately when the rate is changed, unlike other benchmark interest rates which only reprice at the end of the agreed fixing drawdown period.
* [[Premium]]
 
* [[Puttable]]
 
* [[Sinking fund]]
 
* [[Spens clause]]
'''Other KIBORs'''
* [[Undated]]
 
Kuwait Inter Bank Offer Rate should not be confused with Karachi IBOR or Kiev IBOR, which are also sometimes known as KIBOR.
 
 
==See also==
*[[Benchmark]]
*[[Central bank]]
*[[InterBank Offered Rate]]
*[[KWD]]
 
[[Category:Corporate_financial_management]]

Revision as of 19:57, 10 March 2015

The purchase and cancellation of outstanding securities through a cash payment to the holder.

More specifically, the paying off or buying back of a debt security by the issuer on or before its stated maturity date. The redemption can be made at par value or at a premium, as is the custom when exercising a call option.

See also

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