Does the currency swap involve interest swap during the holding period? Currency swap refers to cross currency swap or currency swap.
Foreign exchange swap refers to foreign exchange swap without interest swap.
The difference between forward, futures, options and swap forward: a contract in which both parties agree to deliver a certain financial asset at an agreed price and manner at a certain time in the future.
Futures: a standardized contract in which both parties agree to deliver a certain standard amount of financial assets at an agreed price and manner at a certain time in the future.
Option: A contract that gives the option purchaser the right to deliver a financial asset at an agreed price and method at a certain time in the future.
Swap: the act of combining two or more transactions with the same currency, the same amount, the opposite direction and different maturities.
What is interest rate swap? Swap refers to the exchange of assets or debts with different interest rates in the same currency. The debtor converts its own floating interest rate debt into fixed interest rate debt through interest rate swap, or vice versa, interest rate swap does not involve the exchange of debt principal.
What credit default swap, credit default swap, credit default swap? These three people are of the same kind and have the same understanding. At present, there is basically no such credit default swap derivative in China. This is a common credit derivative product in foreign bond markets. For investors, one way to avoid credit risk is to ask for credit spread directly according to credit rating, and the other way is to buy credit derivatives such as credit default swaps. If the number of corporate bond issuers in the portfolio is small, the industry concentration is high, and the credit risk cannot be effectively dispersed, then you can choose to buy credit default swaps for a long time to reduce the portfolio risk.
Credit default swap is also called credit default swap, so structurally, it is a transaction that transfers the credit risk of reference assets from the credit guarantee buyer to the credit seller. The buyer of credit guarantee shall pay a fixed fee to the seller who is willing to bear the risk guarantee during the contract period; While accepting the expenses, the seller of credit guarantee promises to compensate the buyer of credit guarantee for the breach of contract during the contract period. The credit corresponding to the reference asset can be a credit or a basket of credits. If a basket of credit defaults, the seller of credit guarantee must compensate the other party for the loss.
The party who buys credit default insurance is called the buyer, and the party who bears the risk is called the seller. Both parties agree that if the default events defined in the contract do not occur (such as the bankruptcy of the debtor of financial assets, the debtor's failure to pay interest on time, the creditor's request to recall the debt principal and demand early repayment, debt restructuring, etc.). ), the buyer will pay the "insurance premium" to the seller on a regular basis. In case of default, the seller will bear the loss of the buyer's assets.
Briefly describe the difference between coupon swap and basic swap. The difference between coupon swap and basic swap is as follows:
Coupon swap refers to the swap between fixed interest rate and floating interest rate of the same currency, that is, one party pays a series of fixed interest rates to the other party in exchange for the other party paying a series of floating interest rates. On the other hand, it is to pay a series of floating interest rates in exchange for a series of fixed interest rates. This is the most basic transaction method in interest rate swap.
For example, one party agrees to pay interest at a fixed interest rate of 10.5%, with a nominal principal of100000 USD and a term of 5 years. Through the exchange, this party obtains the same nominal principal and the LIBOR interest payment amount with 6-month interest rate.
Basis swap refers to floating interest rate swap based on one reference interest rate to another.
Application: In the basic interest rate swap transaction, both parties pay and collect interest at two different floating interest rates. Research on the feasibility and market construction of RMB interest rate swap in China, in which the interest amounts of the two floating interest rates are calculated on the basis of the same nominal principal.
Is there a difference between soul exchange and body exchange? Active and passive, body exchange should be a blending exchange without soul will. I understand that the relationship between soul and body is not a physical relationship, but a blend. The subject is the soul, and soul communication, as the subject, of course, needs the will of the soul first, otherwise the soul consciousness will dissipate without concentration after the soul leaves the body. I think only people with strong soul consciousness will have the phenomenon of out-of-body experience.
According to the purpose and principle of trading, try to compare the similarities and differences between foreign exchange swaps and foreign exchange swaps. Foreign exchange swap actually includes two kinds of transactions: one is spot transaction and the other is forward transaction. A foreign exchange swap transaction refers to a transaction in which you sell currency A and buy currency B on a certain date, and at the same time buy forward currency A and sell forward currency B in reverse, that is, you swap the original currency A in your hand. The purpose of swap transaction is to meet people's needs for different funds, that is, to preserve foreign exchange and prevent exchange rate risks.
Foreign exchange swap refers to the currency and interest business in which two parties exchange different currencies with the same term and amount. It may involve interest payment and principal payment swap. . The purpose of foreign exchange swap transactions is not all hedging. But only if both sides are risk hedgers can we achieve "win-win".
The difference between swap and hedging Swap refers to buying spot foreign exchange in the foreign exchange market and selling forward foreign exchange in the same currency at the same time, or selling spot foreign exchange and buying forward foreign exchange in the same currency at the same time, that is to say, merging a spot and a forward business in the same transaction, or merging lending business in one business. In swap transactions, the difference between spot exchange rate and forward exchange rate, that is, premium or discount, is called swap exchange rate.
Swap, also known as swap, refers to a transaction that two parties exchange with each other in a certain period of time in the future according to a pre-agreed agreement.
Foreign exchange swap, also known as time arbitrage, refers to foreign exchange bought and sold in the same foreign exchange market at the same time with different maturities and the same amount.
Hedging refers to the trading activities in which an enterprise designates one or more hedging instruments to avoid foreign exchange risk, interest rate risk, commodity price risk, stock price risk and credit risk. , so that the fair value or cash flow of the hedging instrument changes, and it is expected to offset all or part of the fair value or cash flow change risk of the hedging item. In order to protect the income and lock in the cost in the process of currency conversion or exchange, the practice of avoiding the risk of exchange rate changes through foreign exchange derivative transactions is called hedging.
Foreign exchange forward contract is one of the most basic hedging financial derivatives. Its advantage lies in that it is the lowest cost hedging method in the case of incomplete financial system and low operating efficiency. The reason is that the transaction is relatively simple, no margin is needed, the number of capital flows involved is small, and the company's decision-making method is simple.
What's the difference between may and can? Is it interchangeable? What can be said is personal ability. For example, I should use Can, but may can do it. It's not about ability. It's just a matter of whether I want to or not.
For example, if I can swim, I should use I can swim instead of I can swim.
A. Definition: Modal verbs are a kind of auxiliary verbs used to express the speaker's mood and modality. They often express orders, requests, refusals, obligations, possibilities, needs, etc. Can and may are two of them.
B. several characteristics of modal verbs:
Modal verbs are different from notional verbs, and cannot be used as predicates alone. Only when they are used together with notional verbs can they be meaningful.
② The person and number of modal verbs have not changed;
The verb after the modal verb must be in its original form.
C. the usage of C.can:
Be able to do something, which means "can, can". For example:
The girl can sing in English.
(2) said permission, meaning "can", such as:
You can take my car to the post office.
(3) said speculation, meaning "maybe, maybe". For example:
He can't be your brother. You look different.
The usage of D.may:
(1) said request, tone is weaker than can. For example:
May I use your eraser?
Of course. But you must return it to me as soon as possible.
(2) said speculation, meaning "maybe, maybe". For example:
She may be at home. Let's go and see him.
E. Negative and interrogative forms of modal verbs:
① Negative type: generally not added after can can, may, such as:
You can't use this bike.
He may be wrong.
2 question type: yes, yes, yes, advanced. For example:
I'm very tired. May I have a rest?
Can you help me with my math?