2020年10月6日 · Why Do Basis Points (bps) Matter? The term basis points avoids the ambiguity in discussions about rates. Confusion could arise in a statement such as, 'a 1% increase from a 10% interest rate.' The 1% increase could be interpreted as either an increase from 10% to 10.1% (relative) or 10% to 11% (absolute).

2020年10月6日 · Typically, the size of the spread is designated in basis points (bps, pronounced 'beeps'). For example, if the T-bill rate is 5.10% and 3-month LIBOR is 5.50%, the TED spread is 40 bps. Over long periods of time the TED spread fluctuates within a wide range, but historically it has roughly stayed within 10-50 bps (0.1% and 0.5%).

2020年10月6日 · This bond's effective duration is 10.00. This means that for every 100 basis point change in rates, the bond's price will change by 10.00%. Effective duration takes into account what commonly happens to callable bondholders: interest rates change over time and the bond is called away before it matures.

2020年10月6日 · Spreads are generally described in ' basis points,' which is abbreviated ' bps ' and pronounced 'beeps.' One percentage point is equal to 100 bps. In the example above, a bond trader would say that the yield spread between the two bonds is '200 beeps.' Yield spreads help investors identify opportunities.

2021年3月16日 · Often, such transactions require the services of a specialist who syndicates the loan on behalf of the borrower; identifying lenders while negotiating terms and conditions, and even representing the borrower throughout disbursements. Loan syndication fees can be expensive, ranging from 5% to 10% of the loan principal. Why Loan Syndication Matters

2020年10月16日 · What is Key Rate Duration? Key rate duration is not the same as effective duration. Effective duration is an estimate of a security's sensitivity to a parallel shift in interest rates, meaning that it assumes that interest rates change by the same degree for, say, one-year bonds, five-year bonds, 10-year bonds, and 30-year bonds.

2020年9月16日 · To illustrate, suppose Bob holds a 10-year bond issued by company XYZ with a par value of $1,000 and a coupon interest amount of $100 each year. Fearful that XYZ will default on its bond obligations, Bob enters into a CDS with Steve and agrees to pay him income payments of $20 (similar to an insurance premium) each year commensurate with the ...

2020年9月29日 · What does mark-to-market (MTM) mean? Using real-world examples, it's never been easier to discover what this common accounting term means for your assets.

2019年10月1日 · Euro Interbank Offered Rate (EURIBOR), is the rate at which European banks offer to lend unsecured funds to each other in the euro market.

2020年10月5日 · Yield to worst (YTW) is the lowest yield an investor can expect when investing in a callable bond.