Bp refers to the basis point (bp), which is used to measure the interest rate changes of bonds and bills in finance.

1 basis point is equal to 0.0 1%, which is one percent of 1%. The base point is often abbreviated as "BP/BPS".

The financial industry usually uses the basis point to express the interest rate change of financial instruments, or the difference (price difference) between two interest rates (including the yield of fixed-income securities).

Because some loans and bonds may usually be related to some indexes or underlying securities, they are usually called indexes (or declines). For example, a loan with an annual interest rate of 0.50% higher than LIBOR is said to be 50 basis points higher than LIBOR, which is usually expressed as "L+50bps" or "L+50" for short.

Extended data:

The expansion of basic point financial concept

Basis (basis point) The difference between the spot price of the same commodity and the futures contract price. That is, the gap between the current price and the futures price.

Calculation formula:

Spot price-futures price = basis point

Due to the cost of holding, the basis point is usually negative. In general, the spot price is actually lower than the nearby futures price. As the delivery deadline approaches, the holding cost decreases, and the difference between spot and futures prices narrows.

The basic points are divided into:

1, strengthen the foundation.

2. Weaken the foundation.

3. National foundation.

4. Premium Basis

The origin of the base point:

1, the storage cost of goods;

2. insurance;

Step 3 pay interest

Baidu encyclopedia -BP

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