Derivatives · glossary
What is left when a hedge and its loan do not match exactly. Atlas's swap and loan read the same rate, but if the screen fails they fall back to different rates. A file note records that gap. Chapter 6
Explained in Chapter 6, Trade Date: the Confirmations, Line by Line, of Derivatives.
What is left when a hedge and its loan do not match exactly is called basis risk. The file note records it, so nobody is surprised later.Read Chapter 6, Trade Date: the Confirmations, Line by Line →
Chapter 1 and this glossary are open to everyone; the whole edition is free to read with a free account until 31 January, and it stays open to an account opened by then.Chapter 1 of Derivatives and this glossary are free to read; the rest of the edition is in the Library, at €12 a month or €79 for a Year Pass.
Related terms
Where this term lives
This term is part of one complete fictional deal, with every document attached and a test after every chapter. Open Derivatives → · All terms A–Z →