Markets Committee and Premium: Difference between pages

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imported>John Grout
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imported>Doug Williamson
(Add definition. Source: BIS https://www.bis.org/publ/qtrpdf/r_qt1809h.htm)
 
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The Markets Committee hosted by the [[Bank for International Settlements]] in Basel, assesses current events and longer-term structural trends that may have implications for financial market functioning and central bank operations.
1. ''Options.''


The Committee comprises senior officials responsible for market operations in 21 central banks.
The amount payable by the buyer of an option to the option writer for the right to deal on the terms contained in the option.
 
 
2. ''Insurance.''
 
The amount payable by an insured to the insurer in return for the protection set out in the terms of the insurance policy.
 
 
3. ''Bonds.''
 
A bond trading in the market ''at a premium'' has a market value greater than its par value.
 
 
4. ''Foreign currency.''
 
A foreign currency trading ''at a premium'' in the forward foreign exchange market is stronger in the forward market, than in the spot market.
 
 
5.
 
Higher-quality, in relation to a product or service.
 
The premium quality is normally reflected in higher pricing or other additional costs.
 
 
6.
 
An additional amount within a purchase price, reflecting additional benefits.
 
For example, a control premium in valuing a company.
 
 
7. ''Investment returns''.
 
Additional return required or expected by investors in certain assets.
 
For example, a term premium on longer maturity bonds.
 
 
== See also ==
* [[Bond]]
* [[Control premium]]
* [[Discount]]
* [[Foreign currency]]
* [[Forward premium]]
* [[Insurance]]
* [[Market value]]
* [[Option]]
* [[Option holder]]
* [[Par value]]
* [[Premium Listing]]
* [[Redemption]]
* [[Return]]
* [[Term premium]]
 
[[Category:Long_term_funding]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]

Revision as of 22:36, 10 June 2020

1. Options.

The amount payable by the buyer of an option to the option writer for the right to deal on the terms contained in the option.


2. Insurance.

The amount payable by an insured to the insurer in return for the protection set out in the terms of the insurance policy.


3. Bonds.

A bond trading in the market at a premium has a market value greater than its par value.


4. Foreign currency.

A foreign currency trading at a premium in the forward foreign exchange market is stronger in the forward market, than in the spot market.


5.

Higher-quality, in relation to a product or service.

The premium quality is normally reflected in higher pricing or other additional costs.


6.

An additional amount within a purchase price, reflecting additional benefits.

For example, a control premium in valuing a company.


7. Investment returns.

Additional return required or expected by investors in certain assets.

For example, a term premium on longer maturity bonds.


See also