Setting: Difference between revisions
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imported>Doug Williamson (Create page. Sources: Linked pages.) |
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A setting of a benchmark interest rate means a particular tenor and currency of that benchmark rate. | A setting of a benchmark interest rate means a particular tenor and currency of that benchmark rate. | ||
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* [[Forward start swap]] | * [[Forward start swap]] | ||
* [[Interest rate]] | * [[Interest rate]] | ||
* [[Tenor]] | * [[Tenor]] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category: | [[Category:Financial_products_and_markets]] | ||
[[Category:Identify_and_assess_risks]] | [[Category:Identify_and_assess_risks]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
[[Category:Risk_frameworks]] | [[Category:Risk_frameworks]] | ||
[[Category: | [[Category:The_business_context]] | ||
Latest revision as of 19:43, 11 March 2024
1. Interest rates - benchmark rates - reference rates.
A setting of a benchmark interest rate means a particular tenor and currency of that benchmark rate.
Also known as a Version of the benchmark rate.
2. Interest rates - floating rates - derivative instruments.
The determination of an interest rate for a predetermined future period, by reference to a benchmark rate.
For example, the interest rate for each tranche of interest payable on floating rate debt is set at the start of the interest calculation period.
Taking another example, a forward start swap has its first interest setting and calculation period starting at a future date.
