Search results
Results From The WOW.Com Content Network
"Libor + x basis points", when talking about a bond, meant that the bond's cash flows were discounted on the swaps' zero-coupon yield curve shifted by x basis points to equal the bond's actual market price. The day count convention for Libor rates in interest rate swaps was Actual/360, except for the GBP, for which it was Actual/365 (fixed). [45]
(Bloomberg Opinion) -- When it comes to overseeing Wall Street, regulators must know that if they give an inch, banks and other large financial institutions will take a mile.That’s part of the ...
This was because most interest rate swaps are linked to the Libor interest rate, while municipal bond rates are linked to the SIFMA Municipal Bond Index interest rate. During the 2007–2008 financial crisis the two benchmark rates decoupled. Municipalities continued to pay on their bonds at the actual market Sifma rate but were paid on their ...
For interest rate swaps, the Swap rate is the fixed rate that the swap "receiver" demands in exchange for the uncertainty of having to pay a short-term (floating) rate, e.g. 3 months LIBOR over time. (At any given time, the market's forecast of what LIBOR will be in the future is reflected in the forward LIBOR curve.)
Investors have pared back gains after Thursday's mixed jobless claims data, which sent the 10-year Treasury yield above 4.6% and reached a seven-month high. The rate fell back modestly on Friday.
The LIBOR Act will transition certain contracts that lack mechanisms to deal with the cessation of LIBOR, replacing LIBOR with SOFR in such contracts, effective July 1, 2023. [2] The federal LIBOR Act is similar to prior legislation passed in New York State in 2021, but is broader as it applies across the United States, not just contracts under ...
The 10-year Treasury bond yield rose three basis points to 4.242%, its highest level in about three months. The bond market has been caught in a sell-off this week as traders adjust their views on ...
A short-term interest rate (STIR) future is a futures contract that derives its value from the interest rate at maturation. Common short-term interest rate futures are Eurodollar, Euribor, Euroyen, Short Sterling and Euroswiss, which are calculated on LIBOR at settlement, with the exception of Euribor which is based on Euribor and Euroyen which is based on TIBOR.