imported>Doug Williamson |
imported>Doug Williamson |
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| ''Risk management - inflation risk - Consumer Price Index (CPI) - derivative instruments - swaps - inflation swap.''
| | The US Financial Crimes Enforcement Network. |
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| A CPI fixing swap is an agreement between two parties to exchange:
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| :(1) a series of payments referenced to the Consumer Price (or Prices) Index; for
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| :(2) a fixed rate of interest.
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| CPI fixing swaps are used to manage CPI inflation risk.
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| Like other capital market swaps, they are settled net and subject to risks including their relative technical complexity, collateral calls, volatile market prices, and reporting requirements.
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| Their current market prices also indicate the swap market's current average expectations about future rates of CPI inflation.
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| This is a dimension of ''expectations theory''.
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| == See also == | | == See also == |
| * [[Call]] | | * [[Know-your-customer]] |
| * [[Capital market swap]]
| | * [[Money laundering]] |
| * [[Collateral]]
| | * [[4MLD]] |
| * [[Consumer Price Index]] (CPI - US)
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| * [[Consumer Prices Index]] (CPI - UK)
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| * [[Counterparty]]
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| * [[Derivative instrument]]
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| * [[EMIR]]
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| * [[Expectations theory]]
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| * [[Financial reporting]]
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| * [[Fixing instrument]]
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| * [[Inflation]]
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| * [[Inflation risk]]
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| * [[Inflation swap]]
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| * [[Interest rate swap]]
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| * [[International Swaps and Derivatives Association]] (ISDA)
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| * [[Regulation]]
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| * [[Risk management]] | |
| * [[Swap]] | |
| * [[UK EMIR]]
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| * [[Volatility]]
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| [[Category:The_business_context]]
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| [[Category:Corporate_finance]]
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| [[Category:Investment]]
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| [[Category:Long_term_funding]]
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| [[Category:Identify_and_assess_risks]]
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| [[Category:Manage_risks]]
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| [[Category:Risk_frameworks]]
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| [[Category:Risk_reporting]]
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| [[Category:Financial_products_and_markets]]
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