Islamic Finance

Perpetual Subordinated Sukuk

July 16, 2021
Derivatives

Binary Floor

July 16, 2021

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It stands for treasury rate index principal swap; an index principal swap in which the floating rate leg is based on the treasury bill auction rate (usually the 3-month T-bill), rather than on LIBOR. It entails the exchange of a treasury rate for a fixed rate agreed-on by the two parties.

This swap has the features of both index principal swaps and treasury-linked swaps.

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