Interest rate guarantee and Opex: Difference between pages

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imported>Doug Williamson
m (Category added 9/10/13)
 
imported>Doug Williamson
(Create the page. Source: The Treasurer, September 2016, p21.)
 
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(IRG).  
'''Op'''erating '''Ex'''penditure.


This is an option on a specified short-term interest rate for a specified notional loan or deposit.
Opex is expenditure on items which are consumed, or whose benefits are otherwise enjoyed, in the short term, generally within the current financial reporting period.
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.
Opex is contrasted with capital expenditure ('capex').




== See also ==
== See also ==
* [[Hedging]]
* [[Capitalise]]
* [[Interest rate]]
* [[Capital expenditure]]
* [[Interest rate option]]
* [[Expenditure]]
* [[Option]]
* [[Revenue expenditure]]
 
[[Category:Manage_risks]]

Revision as of 15:11, 6 September 2016

Operating Expenditure.

Opex is expenditure on items which are consumed, or whose benefits are otherwise enjoyed, in the short term, generally within the current financial reporting period.

Opex is contrasted with capital expenditure ('capex').


See also