Generated on 2014/06/19 at 04:58:12 AM
Instrument Item: Quanto Swap
| Acronym or Abbreviation | ||||
| Alias or Synonym | differential, diff swap | |||
| Key Words | ||||
| Description (HTML) | A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates. Though they deal with two different currencies, payments are settled in the same currency. Fixed-for-floating quanto swaps allow an investor to minimize foreign exchange risk. This is achieved by fixing both the exchange rate and interest rate at the same time. Floating-for-floating swaps have slightly higher risk, since each party is exposed to the spread between each country's currency interest rate. |
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| Source Description | Investopedia | |||
| Source URL | http://www.investopedia.com/terms/q/quantoswap.asp | |||
| Document | No document attached... | |||
| Lifecycle - Exist Start Date | UNKNOWN | |||
| Lifecycle - Exist End Date | UNKNOWN | |||
| Item Quality Status (Item Quality Status) | ||||
| Updated by | webea.09 | |||
| Updated on | 2014-04-08-14.50.24.878000 | |||
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