I don’t know how many of us, have actually heard about NDFs or know about this financial instruments and hence, we have picked up this topic for today`s detailed discussion. To start with, we will be explaining the meaning and definition of NDF, going on with market & currencies associated with NDFs. And, our closure for today`s post will be with the structure & the various uses of NDFs.
Meaning: In finance, a non-deliverable forward (NDF) is an outright forward or futures contract in which counterparties settle the difference between the contracted NDF Continue reading “NDF: Non Deliverable Forward Swap – Back To School”
A swap can be defined as simultaneously purchase and sale of equivalent amount of base currency for 2 different maturities, essentially its a simultaneously borrowing and lending of 2 currencies between 2 banks for specific period express in the form of purchase and sell transactions. The interest rate differential payable or receivables by one of the parties is factored into exchange rates applied for the 2 components of transactions. Therefore the difference between Continue reading “SWAPS : Foreign Currency Swaps (Back to school)”
Foreign exchange market operates where currencies are bought and sold, where as in Euro currency market currencies are deposited and borrowed.
The reason Foreign market operates on exchange rate and Euro currency market operates on interests rates.
1) The Euro currency market originated out of the need of investors Continue reading “The Euro Currency Market – (Back to School)”
Well its the last day of the month and the world economy standing in the mid of year 2012. Lets try to pull the events by connecting the dots and see where the world is :
1) After months weeks years of posturing and denial Spain and Cyprus formally requested aid from Europe bailout funds. More so they have officially confessed to their insolvency and the insolvency of their banking system.
Spain 10 year bond yield breached the worst level and it touched the 7% in return many od the Spain bank ratings got junk by Moodys
2) Over in the US, the city of Stockton, California filed for bankruptcy this week… Continue reading “2012 Mid Year World economy towards the path of Bailouts & Bankruptcies”
Source: International Monetary Fund.
It has been correctly quoted that picture speak more than the words. So what does the graph looks like, Not more can be said for them as we focusing on Europe back again. Continue reading “Italy next on the radar – Europe”