Search results
Results from the WOW.Com Content Network
As an example, a A Bank (The Buyer) buys the 3 Times Enhanced Credit Return Investment –the 3 Times ECRI (or a Credit Default Swap) from B Bank (The Seller), where the reference entity is bond. The following definitions are given in their Confirmation: 1. Issue amount : USD10 mio. (or the Investment by B Bank deposited to A Bank in 5 years ...
FpML (Financial products Markup Language) is a business information exchange standard based on Extensible Markup Language (XML) that enables business-to-business over-the-counter (OTC) financial derivative transactions online by following W3C standards.
On 17 The ABX index was a credit default swap of asset-backed mortgages of 30 of the most liquid mortgage-backed bonds. Hedge funds began shorting that ABX index in early 2006 at par. The Deutsche Bank, alone, reportedly made $250 million.(Lenzner 2007) Recognition
An export credit agency (known in trade finance as an ECA) or investment insurance agency [1] is a private or quasi-governmental institution that acts as an intermediary between national governments and exporters to issue export insurance solutions and guarantees for financing. The financing can take the form of credits (financial support) or ...
In finance, an interest rate cap is a type of interest rate derivative in which the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price. An example of a cap would be an agreement to receive a payment for each month the LIBOR rate exceeds 2.5%. Similarly, an interest rate floor is a ...
A structured product, also known as a market-linked investment, is a pre-packaged structured finance investment strategy based on a single security, a basket of securities, options, indices, commodities, debt issuance or foreign currencies, and to a lesser extent, derivatives . Structured products are not homogeneous — there are numerous ...
Institutions entered into contracts called credit default swaps (CDS) that result in payment should default occur on a particular debt instrument (including government issued bonds). But, since multiple CDSs can be purchased on the same security, it is unclear what exposure each country's banking system now has to CDS.
A constant maturity credit default swap ( CMCDS) is a type of credit derivative product, similar to a standard credit default swap (CDS). [1] Addressing CMCDS typically requires prior understanding of credit default swaps. In a CMCDS the protection buyer makes periodic payments to the protection seller (these payments constitute the premium leg ...