1) Currency swaps involve two companies exchanging loans in different currencies so they can each borrow at lower domestic rates rather than higher international rates. For example, a US and Brazilian company arrange for the US company to borrow Brazilian reals from a Brazilian bank at 5% while the Brazilian company borrows dollars from a US bank at 4%.
2) The companies then swap the loans, so the US company receives dollars and pays 5% interest to the Brazilian bank, while the Brazilian company receives reals and pays 4% interest to the US bank. This allows both companies to access lower domestic borrowing rates rather than higher international rates of 9-10%.
3) Currency swaps also involve an exchange of notional principal amounts
Swaps explained. Very useful for CFA and FRM level 1 preparation candidates. For a more detailed understanding, you can watch the webinar video on this topic. The link for the webinar video on this topic is https://www.youtube.com/watch?v=JKBKnxM2Nj4
Swaps explained. Very useful for CFA and FRM level 1 preparation candidates. For a more detailed understanding, you can watch the webinar video on this topic. The link for the webinar video on this topic is https://www.youtube.com/watch?v=JKBKnxM2Nj4
It covers interest rate swaps, currency swaps & equity swaps along with their payouts.
It covers exchange of fixed rate instruments with floating rate instruments.
It will be helpful for students, exporters, importers & researchers.
This presentation provides an understanding of what financial modelling is and how it is used. Moreover it covers the basic approach for creating financial models and utilising them as needed.
It covers interest rate swaps, currency swaps & equity swaps along with their payouts.
It covers exchange of fixed rate instruments with floating rate instruments.
It will be helpful for students, exporters, importers & researchers.
This presentation provides an understanding of what financial modelling is and how it is used. Moreover it covers the basic approach for creating financial models and utilising them as needed.
#Financial Modeling: Growing needs of financial modeling skills in financial ...13 Llama Interactive
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Trusted by Fortune 500 Companies and 10,000 Students from 40+ countries across the globe, EduPristine is one of the leading Training providers for Finance Certifications like CFA, PRM, FRM, Financial Modeling, Business Analytics etc. EduPristine holds a profound history in training Risk Professionals across the globe. It has been an International Authorized Training provider for FRM & PRM trainings since past 4 years and has helped 250+ FRM aspirants clear the Exam. It is Registered with GARP & CFA Institute as an Approved Provider of Continuing Professional Education (CPE) credits.
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Covered interest parity a law of nature in currency marketsGE 94
CIP is a cornerstone principle in international finance. First described by John Maynard Keynes in 1923, the idea that FX forward rates must reflect interest rate differentials between currencies has long been considered one of the best tested theories in financial economics. If a market participant is willing to swap a higher yielding currency for a lower yielding currency over some time horizon, he must be compensated for the difference in yield via an adjusted forward price. Otherwise an arbitrage opportunity arises until prices and interest rates align again.
The financial crisis and direct aftermath revealed cracks in the armour of CIP. In a market environment with scarce liquidity and high credit risks in forward markets, dealers were constrained in their ability to profit from what was previously regarded as an almost risk-free arbi¬trage trade. But as conditions in financial markets slowly normalised after the crisis, CIP deviations remained and cross-currency basis never returned to its pre-crisis levels. After narrowing for some time, it started to widen again across most G10 pairs since approximately 2015. Increasingly, FX forward markets seemingly do not reflect what would be expected given the observed interest rate differentials. Figure 1 illustrates these dynamics by depicting the magnitude of G10 cross-currency basis over time for an exemplary three-month tenor.
Forward Rate Agreements, or FRAs, are a way for a company to lock in an interest rate today, for money the company intends to lend or borrow in the future.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
1. Currency swaps are an essential financial instrument utilized by banks,
multinational corporations and institutional investors. Although these type of
swaps function in a similar fashion to interest rate swaps and equity swaps,
there are some major fundamental qualities that make currency swaps
unique and thus slightly more complicated. (Learn how these derivatives
work and how companies can benefit from them. Check out An Introduction
To Swaps.)
TUTORIAL: Introduction To TheForex Market
A currency swap involves two parties that exchange a notional principal with
one another in order to gain exposure to a desired currency. Following the
initial notional exchange, periodic cash flows are exchanged in the
appropriate currency.
Let's back up for a minute to fully illustrate the function of a currency swap.
Purpose of Currency Swaps
An American multinational company (Company A) may wish to expand its
operations intoBrazil. Simultaneously, a Brazilian company (Company B) is
seeking entrance into the U.S.market. Financial problems that Company A will
typically face stem from Brazilian banks' unwillingness to extend loans to
international corporations. Therefore, in order to take out a loan in Brazil,
Company A might be subject to a high interest rate of 10%. Likewise,
Company B will not be able to attain a loan with a favorable interest rate in
the U.S.market. The Brazilian Company may only be able to obtain credit at
9%.
While the cost of borrowing in the international market is unreasonably high,
both of these companies have a competitive advantage for taking out loans
from their domestic banks. Company A could hypothetically take out a loan
from an American bank at 4% and Company B can borrow from its local
institutions at 5%. The reason for this discrepancy in lending rates is due to
the partnerships and ongoing relations that domestic companies usually have
with their local lending authorities. (This emerging market is making strides
in regulation and disclosure. See Investing In China.)
More than 50% of retirement age individuals to not have enough savings
Setting Up the Currency Swap
Based on the companies' competitive advantages of borrowing in their
domestic markets, Company A will borrow the funds that Company B needs
from an American bank while Company B borrows the funds that Company A
will need through a Brazilian Bank. Both companies have effectively taken
out a loan for the other company. The loans are then swapped. Assuming
that the exchange rate between Brazil (BRL) and the U.S (USD) is
2. 1.60BRL/1.00 USD and that both Companys require the same equivalent
amount of funding, the Brazilian company receives $100 million from its
American counterpart in exchange for 160 million real; these notional
amounts are swapped.
Company A now holds the funds it required in real while Company B is in
possession of USD. However, both companies have to pay interest on the
loans to their respective domestic banks in the original borrowed currency.
Basically, although Company B swapped BRL for USD, it still must satisfy its
obligation to the Brazilian bank in real. Company A faces a similar situation
with its domestic bank. As a result, both companies will incur interest
payments equivalent to the other party's cost of borrowing. This last point
forms the basis of the advantages that a currency swap provides. (Learn
which tools you need to manage the risk that comes with changing rates,
check out Managing Interest Rate Risk.)
Advantages of the Currency Swap
Rather than borrowing real at 10% Company A will have to satisfy the 5%
interest rate payments incurred by Company B under its agreement with the
Brazilian banks. Company A has effectively managed to replace a 10% loan
with a 5% loan. Similarly, Company B no longer has to borrow funds from
American institutions at 9%, but realizes the 4% borrowing cost incurred by
its swap counterparty. Under this scenario, Company B actually managed to
reduce its cost of debt by more than half. Instead of borrowing from
international banks, both companies borrow domestically and lend to one
another at the lower rate. The diagram below depicts the general
characteristics of the currency swap.
Figure 1: Characteristics of a Currency Swap
3. For simplicity, the aforementioned example excludes the role of a swap
dealer, which serves as the intermediary for the currency swap transaction.
With the presence of the dealer, the realized interest rate might be increased
slightly as a form of commission to the intermediary. Typically,
the spreads on currency swaps are fairly low and, depending on thenotional
principals and type of clients, may be in the vicinity of 10 basis points.
Therefore, the actual borrowing rate for Companyies A and B is 5.1% and
4.1%, which is still superior to the offered international rates.
Currency Swap Basics
There are a few basic considerations that differentiate plain vanilla currency
swaps from other types of swaps. In contrast to plain vanilla interest rate
swaps and return based swaps, currency based instruments include an
immediate and terminal exchange ofnotional principal. In the above example,
the US$100 million and 160 million reals are exchanged at initiation of the
contract. At termination, the notional principals are returned to the
appropriate party. Company A would have to return the notional principal in
reals back to Company B, and vice versa. The terminal exchange, however,
exposes both companies to foreign exchange risk as the exchange rate will
likely not remain stable at original 1.60BRL/1.00USD level. (Currency moves
are unpredictable and can have an adverse effect on portfolio returns. Find
out how to protect yourself. See Hedge Against Exchange Rate Risk With
Currency ETFs.)
Additionally, most swaps involve a net payment. In a total return swap, for
example, the return on an index can be swapped for the return on a
particular stock. Every settlement date, the return of one party is netted
against the return of the other and only one payment is made. Contrastingly,
because the periodic payments associated with currency swaps are not
denominated in the same currency, payments are not netted. Every
settlement period, both parties are obligated to make payments to the
counterparty.
Bottom Line
Currency swaps are over-the-counter derivatives that serve two main
purposes. First, as discussed in this article, they can be used to minimize
foreign borrowing costs. Second, they could be used as tools to hedge
exposure to exchange rate risk. Corporations with international exposure will
often utilize these instruments for the former purpose while institutional
investors will typically implement currency swaps as part of a comprehensive