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FX Risk

The risk that arises from potential fluctuations in the fair value (FV) or future cash flows of a financial instrument...

LCAPM

It stands for local capital asset pricing model; a capital asset pricing model (CAPM) that is premised on that investors hold...

CTRS

It stands for currency total return swap; a total return swap (TRS) that allows the buyer to hedge against both…

Currency-Protected Swap

A cross currency basis swap which doesn’t involve currency conversion. For example, assume short-term interest rates in Japan are very…

Omega Risk

The risk (also known as a currency correlation risk) that is inherent in cross-currency investments/ positions where the correlation between...

Currency Correlation Risk

The risk that is inherent in cross-currency investments/ positions where the correlation between investment/ position returns and exchange rates impact...

Omega Risk

A currency risk that is embedded in an option contract whose underlying is denominated in a currency other than that...

Exchange Rate Risk

The risk that arises from potential fluctuations in the fair value (FV) or future cash flows of a financial instrument...

Foreign Exchange Risk

The risk that arises from potential fluctuations in the fair value (FV) or future cash flows of a financial instrument...

Currency Risk

The risk that arises from potential fluctuations in the fair value (FV) or future cash flows of a financial instrument...