Interest Rate Swaps and Economic Exposure potx

... use of interest rate swaps when firms face economic exposure. Exchange rate shocks have a microeconomic effect on the firm's cash flows and a macroeconomic effect on the interest rate in ... http://www.frbatlanta.org/publica/work_papers/. Interest Rate Swaps and Economic Exposure Gautam Goswami and Milind Shrikhande Federal Reserve Bank of Atlanta Working P...

Ngày tải lên: 15/03/2014, 14:20

Ngày tải lên: 15/02/2014, 05:20

... a floating -rate market and promises to pay the Aaa corporation a fixed- rate interest, while the Aaa corporation raises funds in a fixed -rate market and promises to pay the Baa corporation a floating -rate interest. 19 OTHER ... Lower - A wants floating and B wants fixed 17 Example of Lowering Fixed Rate Costs: Baa corporate borrows at floating rate = T-bill + 0.5% Aaa cor...

Ngày tải lên: 15/03/2014, 02:20

... of interest rate risk. For example, interest rate swaps are typically created so that their market price is equal to zero initially, but they still mitigate the bank’s exposure to interest rate ... Interest Rates (By Bank Characteristics and the Usage of Interest Rate Derivatives) Interest Rate Surprise Variable × Interest Rate Surprise Level Slope Swaps 0.21...

Ngày tải lên: 17/02/2014, 03:20

Ngày tải lên: 23/02/2014, 11:20

... expected growth rate of output (or aggregate demand) and the real interest rate, rather than a connection between the level of output and the real interest rate. (That is, the standard IS schedule ... lower interest rate with higher inflation. Instead, he argued that the nominal interest rate had to rise one-for-one with sustained inflation and monetary expansion due to th...

Ngày tải lên: 06/03/2014, 02:21

... Meetings, Interest Rate Decisions, and Surprise Measures The table contains interest rate decisions of the MPC for the period June 1997–October 2007. “Bloomberg Expectation” refers to the interest rate ... μ pos and μ neg are additional constant terms, I(Δi>0) is an indicator function that takes the value of one on interest rate surprise days between 12:05 and 13:00 i...

Ngày tải lên: 06/03/2014, 14:20

... Department of Economics Working Paper: 01/46 Duflo, Esther (2003). Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa, World Bank Economic Review, ... Ranis, Gustav, Frances Stewart and Alejandro Ramires (2000). Economic Growth and Human Development, World Development Vol. 28, No. 2 Ravallion, Martin (1997). Good and Bad Growth:...

Ngày tải lên: 08/03/2014, 06:20

... of selling, advertising, and delivery of goods and services. 1 GlossaryoFAccounting,Finance and Economic Terms  Accounting–pages1‐7 and 8 Finance–page7 Economics–page7  ACCOUNTING: http://www.alpineguild.com/glossary_of_important.htm Account‐‐arecordoffinancialtransactions;usuallyreferstoaspecificcategoryortype,such astravelexpenseaccountorpu...

Ngày tải lên: 15/03/2014, 22:20

... the multiplication with E i (t) and the division by 130). The variable k i (t) states the ratio of the bank’s interest rate exposure to the interest rate risk exposure of the bond portfolio, ... this standardized interest rate shock. Currently, the standardized interest rate shock consists of two parts: a parallel upward shift of 130 basis points (bp) in the entire term...

Ngày tải lên: 16/02/2014, 06:20