Derivative and Transition: Difference between pages

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1.
1. ''Climate change - financial risks''.


Abbreviation for derivative financial instrument.
Abbreviation for climate transition, relating to financial risks that could arise from adjusting to a lower-carbon economy.


In this context, financial climate transition is distinct from the direct physical risks of climate change.


2.


''Maths''
2. ''Risk-free rates - LIBOR and related transitions - conduct.''


A derivative function describes the rate of change of the underlying function, with respect to changes in one of the variables in the underlying function.
In the context of risk-free rates, transition refers to the discontinuation of LIBOR and similar rates, and their replacement by other risk-free interest rates.


*The first derivative describes the slope of the function curve at a given point on the curve.
This transition is important both for non-financial corporates, and for financial institutions themselves, for example in relation to conduct.
*The second derivative describes the rate of change of the slope. In other words the degree of curvature, at a given point.
 
 
3. ''Other contexts.''
 
Any other substantial and long term change.
 
Especially one carrying material risks and financial risks.




== See also ==
== See also ==
* [[Derivative instrument]]
* [[Climate change]]
* [[Embedded derivative]]
* [[Climate Transition Benchmark]]
* [[Greeks]]
* [[Climate Transition Finance Handbook]]
* [[Climate transition risk]]
* [[Conduct]]
* [[ESG transition]]
* [[Fallback]]
* [[Financial Stability Board]]
* [[Fossil fuel]]
* [[IBOR transition]]
* [[Just transition]]
* [[LIBOR]]
* [[LIBOR transition]]
* [[Material]]
* [[Paris Agreement]]
* [[Reputational risk]]
* [[Risk-free rates]]
* [[Stranded assets]]
* [[Synthetic LIBOR]]
* [[Tough legacy]]
* [[Transaction]]
* [[Transformation]]
* [[Transition finance]]
* [[Transition Pathway Initiative]]  (TPI)
* [[Transition plan]]
* [[Transition Plan Taskforce]]  (TPT)  - UK
* [[Transition risk]]
* [[Transition sukuk]]
* [[Translation]]
 
 
== External link ==
* [https://www.bankofengland.co.uk/knowledgebank/climate-change-what-are-the-risks-to-financial-stability Climate change - What are the risks to financial stability? Bank of England]
 
[[Category:Accounting,_tax_and_regulation]]
[[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:Financial_products_and_markets]]

Revision as of 07:25, 28 September 2022

1. Climate change - financial risks.

Abbreviation for climate transition, relating to financial risks that could arise from adjusting to a lower-carbon economy.

In this context, financial climate transition is distinct from the direct physical risks of climate change.


2. Risk-free rates - LIBOR and related transitions - conduct.

In the context of risk-free rates, transition refers to the discontinuation of LIBOR and similar rates, and their replacement by other risk-free interest rates.

This transition is important both for non-financial corporates, and for financial institutions themselves, for example in relation to conduct.


3. Other contexts.

Any other substantial and long term change.

Especially one carrying material risks and financial risks.


See also


External link