Foreign exchange forward contract and Loan market: Difference between pages

Latest revision as of 15:04, 3 November 2021

The loan market is the market where banks and other lenders provide loans to borrowers, generally documented in a loan agreement.

It also includes the secondary market in which loans are sold on to other investors, sometimes repackaged.

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-A transaction which solely involves the exchange of two different currencies:
+The loan market is the market where banks and other lenders provide loans to borrowers, generally documented in a loan agreement.
-<nowiki>
+It also includes the secondary market in which loans are sold on to other investors, sometimes repackaged.
-  (i) on a specific future date
-  (ii) at a fixed foreign exchange rate which is pre-agreed at the outset of the contract.</nowiki>
-Foreign exchange forward contracts are used - among other purposes - for hedging forward foreign exchange exposures.
+==See also==
-For example known or likely future currency receivables and payables.
+* [[Borrower]]
+* [[Debt]]
+* [[Debt capital market]]
+* [[Documentation]]
+* [[Lender]]
+* [[Loan agreement]]
+* [[Loan Market Association]]
+* [[Primary market]]
+* [[Secondary market]]
-They are priced by adjusting the spot foreign exchange rate to reflect the interest rate differential between the two currencies involved for the forward period.
+[[Category:Accounting,_tax_and_regulation]]
+[[Category:The_business_context]]
+[[Category:Financial_products_and_markets]]
-Also known as a Forward foreign exchange contract, or a Foreign exchange forward.
-== See also ==
-* [[Hedging]]
-* [[Non-deliverable forward]]
-* [[Synthetic]]