Interest rate guarantee: Difference between revisions
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imported>Administrator (CSV import) |
imported>Doug Williamson m (Category added 9/10/13) |
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(IRG). | (IRG). | ||
This is an option on a specified short-term interest rate for a specified notional loan or deposit. | This is an option on a specified short-term interest rate for a specified notional loan or deposit. | ||
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A lender or investor normally wants a guarantee that their hedged rate receivable will be 'no less 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. | ||
== See also == | == See also == | ||
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* [[Interest rate option]] | * [[Interest rate option]] | ||
* [[Option]] | * [[Option]] | ||
[[Category:Manage_risks]] | |||
Latest revision as of 13:53, 9 October 2013
(IRG).
This is an option on a specified short-term interest rate for a specified notional loan or deposit.
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.
