Individuals in the early-to-middle years of their working careers are in the accumulation phase. As the name implies, these individuals are attempting to accumulate assets to satisfy fairly immediate needs (for example, a down payment for a house) or longer-term goals (children’s college education[...]
Posts Tagged ‘debt’
November 15th, 2009 - 8:55 am § in Long-term Positions
Long-term Positions
Positions that are of longer term are more often hedged through swap markets than forward markets. The structure of a foreign currency swap is very similar to that of a floating rate interest rate swap. We will take the case of a floating rate ¥1000bn five-year loan with interest paid every three m[...]
October 2nd, 2009 - 8:53 am § in GAP ANALYSIS
GAP ANALYSIS
In many countries banks are required to disclose their period-end interest rate gap positions in the form of the following report. These reports show balance sheet assets and liabilities broken down by when they are next due for repricing. The effects of off-balance sheet items such as swaps are als[...]