Print this

Derivatives

Thursday, January 12, 2012

What is TreasuryView™?

Technology for Financial Risk Professionals which helps them increase client revenues and retention.
More information

If you cover Financial risk, Capital markets, Derivatives or Auditing:

Start the free trial

  • What is a Cap?

    An interest-rate cap is a hedging instrument giving protection against a potential rise in short-term interest rates. Caps are purchased against a premium and typically have tenors between 1 and 10 years. If short-term rates exceed preset strike levels, the cap holder receives a compensation payment for the period.

  • What is a Floor?

    Interest Rate Floors have been used in floating interest rate investment strategies securing minimum return on a certain level if short-term interest rates fall below a pre-agreed strike level. Similarly to the Cap, the floor buyer receives a protection against premium payment. On the liability side, floors have been used in funding cost reduction strategies or cap cheapening. The most widely used strategy using floors is the so-called Interest Rate Collar (investment solution: collared floater).

  • What is a Collar?

    A Collar is a hedging instrument consisting of two combined options. By using a Collar, the interest cost of an underlying transaction is being limited within a preset range. Hence, a Collar combines the results of both Cap and Floor.

  • What is an Interest Rate Swap?

    Interest rate swaps represent a useful interest risk hedging instrument for more efficient asset and liability management of client’s balance sheets.

Notes to users:
We are constantly expanding our functionality and improving the user experience. This requires to make changes from time to time.
This may result in small discrepancies between the help section and system, for which we apologise.

KFPD GmbH / TreasuryView Software Ltd 2007-2011 All rights reserved   Copyright  |  Disclaimer  |  Privacy |  Contact us