Financial and business terms. 2012.
Break even rate — A position which shows the break even rate per currency per time bracket. The break even rate is calculated with the following formula: Break Even R.= ((tot ass x avg ass rate) (tot ass x avg liab rate))/Cumulative Mismatch See also… … International financial encyclopaedia
Break even rate in interest sensitivity analysis — The average interest rate of the funding (negative gap) or the average interest rate of the lending (positive gap) necessary to break even (zero profit) the mismatch in each specified time period. See also Risk management … International financial encyclopaedia
Interest rate analysis — Is used to show the analysis on what if situations if the mismatched book is closed at the market rate and what will happen to the interest flow if market rates go up/down by a certain percentage. The total interest book is split into two… … International financial encyclopaedia
Interest rate change sensitivity — Refer instead to Risk management and Break even rate … International financial encyclopaedia
Interest — For other uses, see Interest (disambiguation). Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money,[1] or money earned… … Wikipedia
Interest result — Is usually shown in two reports: • Break even rates report. • Interest rate analysis. See also Position, position administration tables, Standard position codes, Combined position code, Risk management, Foreign exchange risk, Forex, Open… … International financial encyclopaedia
Rate equation — The rate law or rate equation for a chemical reaction is an equation that links the reaction rate with concentrations or pressures of reactants and constant parameters (normally rate coefficients and partial reaction orders).[1] To determine the… … Wikipedia
Security interest — A security interest is a property interest created by agreement or by operation of law over assets to secure the performance of an obligation, usually the payment of a debt.[1] It gives the beneficiary of the security interest certain… … Wikipedia
Constant rate in interest sensitivity analysis — The average interest rate of the funding (negative gap) or the average interest rate of the lending (positive gap) necessary to maintain in each specified time period the present spread. See also Risk management and break even rate … International financial encyclopaedia
Foreign exchange risk analysis on foreign currency interest report — A standard position report which analyses the foreign exchange risk on interest by comparing defined risks with costs and expenses. It gives a total cumulative mismatch for the foreign exchange risk as well as a mismatch for each individual… … International financial encyclopaedia
