Basket and Notional amount: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
m (Add header.)
 
imported>Doug Williamson
(Layout.)
 
Line 1: Line 1:
1. ''Foreign exchange.''
The principal amount (for example in an interest rate swap, forward rate agreement, cap or floor) or each of the amounts (in a cross currency interest rate swap) to which interest rates are applied in order to calculate periodic payment obligations.


An artificial currency based on a mixture of actual currencies.


 
Also known as ''notional principal'' or ''notional value''.
2. ''Documentation.''
 
In borrowings documentation, an exception to a financial covenant or other restriction. 
 
More commonly known as a carve-out.
 
 
3. ''Inflation.''
 
A set of goods, services, or both, used for the calculation of an inflation index.
 
 
4. ''Wider context.''
 
More generally, any other grouping or aggregation of items.
 
For example, for risk management purposes.




== See also ==
== See also ==
* [[Carve-out]]
* [[Cap]]
* [[Covenant]]
* [[Currency swap]]
* [[Currency basket]]
* [[Derivative]]
* [[Documentation]]
* [[Floor]]
* [[Foreign exchange]]
* [[Forward rate agreement]]
* [[Guide to risk management]]
* [[Interest rate swap]]
* [[Index]]
* [[Nominal]]
* [[Inflation]]
* [[Risk management]]
* [[USDX]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Financial_products_and_markets]]

Revision as of 07:57, 14 December 2019

The principal amount (for example in an interest rate swap, forward rate agreement, cap or floor) or each of the amounts (in a cross currency interest rate swap) to which interest rates are applied in order to calculate periodic payment obligations.


Also known as notional principal or notional value.


See also