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Mid Swap

The reference rate which is used to calculate the premium that a bond buyer will pay. Adding a spread to...

Fear Gauge

A market tool that measures investors' feelings about stock option risk levels in a particular stock index (the S&P 100)....

Cash Flow Hedge

A hedge that aims to mitigate the risks associated with future cash flows (e.g., the risk of change in foreign...

Daily Interest

Interest is considered accrued when it is added to the balance on the account, which accrues on loans such as...

Bad Bank

A financial institution that is set up by a government to absorb toxic assets (bad loans and nonperforming loans) owned by state-guaranteed banks...

Volatility Regime

The band or range in which volatility changes upwardly and downwardly, but not exceeding its upper and lower boundaries. In simple terms,...

Fair Value Hedge

A hedge that accounts for the changes in the fair value of a recognized asset or liability or that of...

Hedge Accounting

A special accounting treatment (measurement/ recognition, etc.) that is applied to match the timing of profit or loss recognition (profit...

Accounting Hedge

A type of hedge that is created for an accounting purpose, rather than for pure risk management purposes. It aims...

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