Forward Rate Agreement Significato

Intermediate capital for a differentiated value of an FRA exchanged between the two parties and calculated from the perspective of the sale of an FRA (imitating the fixed interest rate) is calculated as follows:[1] In other words, an advance rate agreement (FRA) is a bespoke, non-prescription, forward-term contract on short-term deposits. A transaction fra is a contract between two parties for the exchange of payments on a deposit, the notional amount, which must be determined later on the basis of a short-term interest rate called the benchmark rate over a predetermined period. FRA transactions are introduced as a hedge against changes in interest rates. The buyer of the contract blocks the interest rate to protect against an interest rate hike, while the seller protects against a possible drop in interest rates. At maturity, no funds exchange hands; On the contrary, the difference between the contractual interest rate and the market interest rate is exchanged. The purchaser of the contract is paid when the published reference rate is higher than the fixed rate agreed by contract and the buyer pays the seller if the published reference rate is lower than the fixed rate agreed by contract. A company trying to guard against a possible interest rate hike would buy FRAs, while a company seeking interest coverage against a possible interest rate cut would sell FRAs. Many banks and large companies will use GPs to cover future interest rate or exchange rate commitments. The buyer opposes the risk of rising interest rates, while the seller protects himself against the risk of lower interest rates. Other parties that use interest rate agreements are speculators who only want to bet on future changes in interest rates.

[2] Development swaps of the 1980s offered organizations an alternative to FRAs for protection and speculation. In finance, a advance rate agreement (FRA) is an interest rate derivative (IRD). In particular, it is a linear IRD with strong associations with interest rate swaps (IRS). L`investitore con la vendita di un FRA si garantisce un futuro ritorno sull`ammontare investito, sempre tramite il pagamento di una Fee. Un azienda, ad esempio, necessita di un capitale di 1,000,000 entro 4 mesi pro un periodo di 6 mesi. La compagnia per coprirsi dalle variazioni dei tassi inerenti a quei 4 mesi, compra un Forward rate agreementenosi il prestito di 1,000,000 usd pro 6 mesi fra 4 mesi, ad un tasso, per esempio del 12,375%. L`azienda inoltre paga una fee dello 0.25% pro i 10 mesi del contratto per ottenere questo tipo di accordo. In questo modo il rischio associato al futuro costo é eliminato. Contract: il tasso di interesse fissato dall`accordo FRA.

Reference game: it tasso base di mercato utilizzato alla fixing date per determinare the settlement sum. Amount of the bill: l`ammontare pagato da una parte all`altra alla settlement date, calcolata sulla differenza tra il Contract e il reference. FRA Auction rates: [(11,875180) 736,000 (10,625×90)/36,000)36,000]/90 – 13.12% Si parte dalla Dealing date, quando lee du parti dell`accord fra accordo stabilisogni o end.