Basis swap and Credit watch: Difference between pages

Latest revision as of 12:23, 6 July 2022

Credit rating.

A list of issues and issuers in relation to which a downgrading or upgrading of the credit rating could be imminent.

Also known as a Watchlist.

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-''Interest rate swaps.''
+''Credit rating.''
-A basis swap is a swap that exchanges two floating interest rates, each being calculated on a different basis.
+A list of issues and issuers in relation to which a downgrading or upgrading of the credit rating could be imminent.
-For example, 3-month LIBOR against 6-month LIBOR, or LIBOR against Prime.
+Also known as a Watchlist.
-The use of a basis swap for hedging is to transform a borrowing or deposit with interest calculated on a particular basis, into a synthetic liability or asset with interest effectively calculated on an alternative basis.
-This alternative interest basis being considered preferable by the hedger.
-Basis swaps are sometimes known as ''floating/floating'' swaps, because one floating rate is exchanged for another.
 == See also ==
-* [[Floating rate]]
+* [[Credit ]]
-* [[Hedging]]
+* [[Credit rating]]
-* [[Interest rate swap]]
+* [[Rating outlook]]
-* [[LIBOR]]
-* [[Prime]]
-* [[Swap]]
-* [[Synthetic]]
-[[Category:Manage_risks]]
+[[Category:Treasury_operations_infrastructure]]