fixed rate
41fixed exchange rate — A country s decision to tie the value of its currency to another country s currency, gold (or another commodity), or a basket of currencies . Bloomberg Financial Dictionary * * * fixed exchange rate fixed exchange rate ➔ exchange rate * * * A… …
42Fixed-For-Floating Swap — An advantageous arrangement between two parties (counterparties), in which one party pays a fixed rate, while the other pays a floating rate. To understand how each party would benefit from this type of arrangement, consider a situation where… …
43Fixed Price — The leg of a swap that is based on an unchanging interest rate. A plain vanilla interest rate swap is an exchange of two streams of cash flows. Both streams are based on the same amount of notional principal, but one stream pays interest on that… …
44fixed-period ARM — MBSs that are fixed rate instruments for an initial period and floating rate securities thereafter. The initial, fixed rate period may be 3, 5, 7, or 10 years. After the expiration of the fixed rate period, a typical fixed period ARM may adjust… …
45fixed income — Bonds are regarded as fixed income investments. They obligate the borrower to pay the bond owner a fixed rate of interest during the term of the loan and to return the principal or face value when the loan matures, and a preferred shareholder… …
46Fixed Interest Rate — A loan or mortgage with an interest rate that will remain at a predetermined rate for the entire term of the loan. Also known as a fixed rate mortgage . An estimated 70 80% of all home mortgages are fixed rate …
47Rate-Improvement Mortgage — A type of fixed rate mortgage, which contains a clause that entitles the borrower to reduce the fixed interest rate charge on the mortgage once, and early in the mortgage. The option will be exercised when interest rates fall lower then the… …
48fixed-for-floating — Denoting an interest rate swap or cross currency interest rate swap in which one party pays a fixed rate, while the other pays a floating rate …
49Fixed Debenture — A note that carries a fixed (as opposed to floating) charge against the issuer’s property or assets for repayment. The charge will remain on the company’s records until the debenture is repaid. Corporations can issue fixed debentures… …
50Rate risk — In banking, the risk that profits may decline or losses occur because a rise in interest rates forces up the cost of funding fixed rate loans or other fixed rate assets. The New York Times Financial Glossary …
