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Topic: Basis point


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In the News (Sat 28 Nov 09)

  
  basis definition - Dictionary - MSN Encarta
In the case of purchased property, the basis is usually what the owner paid for it.
Basis does a number of jobs that other words can do better or that need not be done at all.
Expressions such as on a continuing basis,on a daily basis, and on a regular basis are sometimes only wordier ways of saying continually, daily, and regularly.
encarta.msn.com /encnet/features/dictionary/DictionaryResults.aspx?refid=1861589137   (275 words)

  
  "Basis point" Definition
Basis points also are used for interest rates.
Basis point - In the bond market, the smallest measure used for quoting yields is a basis point.
Basis point : in the bond market, the smallest measure used for quoting yields is a basis point.
www.level2.ru /dictionary/b/basis_point.html   (210 words)

  
 Basis Point
Basis points are often used to report fund fees.
Basis points are also used for interest rates.
For example, an interest rate of 5% is 50 basis points greater than an interest rate of 4.5%.
www.russell.com /us/glossary/equities/basis_point.htm   (93 words)

  
 Basis Point
A basis point is one one-hundredth of a percent.
For example, a 150 basis point rise in interest rates is the same as a 1.5% rise.
A 10 basis point fee is the same as a 0.1% fee.
www.riskglossary.com /articles/basis_point.htm   (118 words)

  
 basis point   (Site not responding. Last check: 2007-10-08)
A Basis Point is defined as 1/100 of 1%, and is used to note changes in the rates of financial instruments.
Basis points, or bps for short, are most commonly used in quoting interest rate and yield changes.
Basis points are most relevant when quoting small changes in important rates.
fxwords.com /b/basis-point.html   (143 words)

  
 What is a basis point?
A basis point is a unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument.
One basis point is equivalent to 0.01% (1/100th of a percent) or 0.0001 in decimal form.
The usage of the basis point measure is primarily used in respect to yields and interest rates, but it may also be used to refer to the percentage change in the value of an asset such as a stock.
www.investopedia.com /ask/answers/05/basispoint.asp   (438 words)

  
 Freddie Mac Press Release Voluntary Commitments - Monthly Interest-Rate Risk Disclosure
The 50 basis point shock in Treasury rates is chosen to approximate the effect of a severe tightening or easing of rates.
This 50 basis point change is applied as a parallel shift, which means that each point along the Treasury yield curve is changed by the same 50 basis points.
The calculation of PMVS-YC is based on an assumed reshaping of the yield curve in which the 25 basis point increase in slope is obtained by shifting the 2-year and 10-year Treasury rates by an equal amount (12.5 basis points), but in opposite directions.
www.freddiemac.com /news/archives2001/interest_risk.htm   (1093 words)

  
 ForeclosuresMass - 'Basis Point' defined in the Real Estate Glossary
Basis Point: A basis point is one one-hundredth of one percentage point.
For example, the difference between a loan at 8.25 percent and a mortgage at 8.37 percent is 12 basis points.
The definition for Basis Point and this glossary as a whole are presented to you as a courtesy of ForeclosuresMass.
www.foreclosuresmass.com /help/view/glossary/termid/96   (124 words)

  
 Euro2day :: OUTLOOK ECB to hike rates 25 basis points; may even discuss bigger move
The ECB has given no indication that a 50 basis point hike is likely and such a move would therefore undermine its claim that it prefers to avoid surprising markets.
The council is likely to debate whether to hike rates by 25 or 50 basis points, but if council members are divided, this would itself be an argument for choosing the more cautious option.
But the ECB has never moved rates at consecutive meetings, and the most likely course is that it will maintain the recent pattern of one 25 basis point increase every quarter, which would take the refi rate to 3.25 pct by the end of the year, economists said.
www.euro2day.gr /articlesfna/15725664   (2183 words)

  
 Basis Point Definition   (Site not responding. Last check: 2007-10-08)
These small variations are measured in basis points, with the smallest unit being 1 basis point.
One basis point equals 0.01%, or one-hundredth of 1%.
A basis point is also used to measure interest rate changes.
www.investorglossary.com /basis-point.htm   (201 words)

  
 The Big Picture | 1/4 point, or . . . ?
The problem with 25 basis points is that the next meeting is up in the air unless they declare there won't be another increase.
I chose 50 basis points or 25 and tough language with another 25 in August, because I think we are behind the curve with inflation, I think BB sees it, and I think he is going to act.
Kaufman's basic point was that the credit markets have been responding in anticipation to the Fed's measured increases, which has tended to nullify the intent of the increases.
bigpicture.typepad.com /comments/2006/06/14_point_or_.html   (6117 words)

  
 Point of View - Global Investment Solutions from Northern Trust
An increasingly common sentiment among institutional investors is that every basis point of excess return is needed.
Portfolio is constructed using risk controls with consideration to index characteristics and sector/security weights, with either a stock-based approach using multi-factor models to select attractive stocks, or a derivative-based approach using futures or swaps for equity exposure and short duration fixed income to create excess return.
The Index Plus strategy only creates 40 basis points of excess return after fees are deducted, which is 40% of the investor's performance goal.
www.northerntrust.com /pointofview/06_July/july06_search.html   (2023 words)

  
 speculativebubble.com Basis point Basics
A basis point is what you get quoted on anything with interest payments involved.
If you hear talk about a basis book, this is where they have the yield to maturity and the prices of bonds.
A basis point is a fraction of a percent.
www.speculativebubble.com /basis.shtml   (211 words)

  
 Banks slash home, car loan rates
One basis point is one hundredth of a percentage point.
SBI plans to offer a 25-50 basis point interest rate discount on all retail loans, while PNB has cut its retail loan rates by 25 basis points till the end of October.
The interest on its floating rate home loan will be 25 basis points lower at 8.50, 8.75 and 9 per cent for repayment tenure of up to 5 years, up to 10 years and up to 20 years, respectively.
www.rediff.com /money/2006/sep/23loan.htm   (431 words)

  
 Interest Rate Roundup
The average 15-year fixed, which is a popular option for refinancing, rose 9 basis points, to 5.95 percent.
The average yield on the one-year held steady at 3.79 percent and the average for the six-month CD dropped a basis point to 3.54 percent.
The six-month average yield slid a basis point to 4.07 percent, and the one-year stagnated at 4.24 percent.
www.bankrate.com /brm/static/rate-roundup.asp   (632 words)

  
 B Definitions: Campbell R. Harvey's Hypertextual Finance Glossary
Option contracts that remain dormant until a trigger point (the barrier price) is reached, at which point the call or put option is activated, and results either in a long or short options position, or in the automatic exercise of an options position.
A bifurcation cascade is often called the period doubling route to chaos because the transition from an orderly system to a chaotic system often occurs when the number of possible solutions begins increasing, doubling each time.
For mutual funds, the point at which the amount invested reduces the sales charge is called the "breakpoint." Each mutual fund may have several breakpoints; the larger the investment, the greater the discount.
www.duke.edu /~charvey/Classes/wpg/bfglosb.htm   (8653 words)

  
 Amazon.com: "basis point volatility": Key Phrase page   (Site not responding. Last check: 2007-10-08)
is that the basis point volatility of the short-term rate does not depend on the level of the rate.
and the implied annualized basis point volatility of the two bonds is not identical (see section 5.2 on yield volatility).
Suppose interest rate volatility is 10% (on a lognormal basis), with the yield level at 4%, then the basis point volatility is 0.1 x 4% = 40 bp.
www.amazon.com /phrase/basis-point-volatility   (531 words)

  
 Derivatives Strategy - December/January'97: Interest Rates   (Site not responding. Last check: 2007-10-08)
If we divide the risk point by the dollar duration of the hedge, we get the dollar amount of the hedge instrument to be used as a hedge.
Since the starting point for the risk point method is the selection of hedge instruments, we have full control over which hedge instruments will be considered for hedging from the outset.
Using the risk point profile of the portfolio, it is easy to carry out scenario analysis including yield curve twists and other reshaping shifts.
www.derivativesstrategy.com /magazine/archive/1997/1296col2.asp   (1767 words)

  
 Subscriber Questions No. 182
That would mean that by the end of the contract the bet was a 50 basis point cut would come.
March stands at 94665 and that is factoring in a 34% chance of a 25 basis point cut.
The April contract stands at 94940, a 100% chance of a 25 basis point cut, and a 76% chance of a 50 basis point cut by April.
www.investmenthouse.com /questions/question182.htm   (628 words)

  
 [No title]
COPYRIGHT NOTICE: This news story is Copyright 2006 by Reuters Basis Point Publishing Ltd. Any reproduction or retransmission of this story - via fax, photocopy or electronically - is a violation of Federal and International Copyright Laws.
The DailyBondPulse is a new Basis Point email service designed to deliver the top bond market news stories of the day to your desktop and help you stay up-to-date on the latest bond market trends across the Asia-Pacific region.
Basis Point will not release, sell or redistribute your information to any other organization.
www.basispoint.net /bondcalendar_2005.htm   (164 words)

  
 Map Analysis Topic 3: Considerations in Sampling Design
  The pattern is formed by first placing a random point in the cell in the lower-left corner of the grid to establish a pair of X and Y offsets.
For the bottom row of the sampling grid, the X-offset is held constant while Y is randomly varied.
The maximum range position identifies the distance between points beyond which the data values are considered to be independent of one another.
www.innovativegis.com /basis/MapAnalysis/Topic3/Topic3.htm   (3741 words)

  
 RTE Business - Fed cuts rates by quarter point, sees risk of weakness
The Federal Open Market Committee lowered its target for the federal funds rate by 25 basis points to 3.75%, and made a 25 basis point reduction in the largely symbolic discount rate to 3.25%.
The 25 basis point cut was on the smaller side of private analysts' expectations.
The consensus forecast of Wall Street analysts had been moving towards a 50 basis point cut in recent days, although a number of economists retained forecasts of a 25 basis point cut.
www.rte.ie /business/2001/0627/fed.html   (311 words)

  
 TheStreet.com: Fifty Basis Points or Bust, Say Fed Forecasters
by 50 basis points tomorrow, it will also issue a statement indicating it remains concerned about the potential for inflation to accelerate, Wall Street forecasters are saying.
A 50-basis-point hike in the fed funds rate tomorrow, to 6.5% from 6%, would be the first rate action of more than 25 basis points since the 50-basis-point hike that ended the last tightening cycle, in February 1995.
A few members expressed a preference for an increase of 50 basis points in the federal funds rate in order to provide greater assurance against a buildup of inflationary expectations and inflation over coming months.
www.thestreet.com /markets/marketfeatures/939909.html   (978 words)

  
 The FOMC Will Certainly Raise Its Federal funds
A 50 basis point hike can be essentially ruled out as it would be inconsistent with the FOMC's commitment at the May meeting to be "measured" in terms of the pace of monetary policy tightening.
The FOMC presumably will want to keep the impression that the most likely path is a series of 25 basis point tightenings, while at the same time gaining a bit more flexibility to be able to deviate from this should the data warrant.
A fifty basis point hike is extremely unlikely because Fed officials have already made a precommitment that the tightening process will be "measured".
www.creditunions.com /home/articles/template.asp?article_id=1331   (851 words)

  
 Basis Point Software
Basis Point Software is a technology provider specializing in web-based interaction, data collection, and production efficiencies for the financial services industry.
Basis Point Software also has strong technology support from our technology partner Augmentum for quality assurance testing of all our products.
Basis Point Software’s mission is to convert our clients’ data into knowledge through the application of modern technology.
www.basispointsoftware.com /about.htm   (318 words)

  
 NASD - Investor Information - Smart Bond Investing
You often hear the term basis points—bps for short—in connection with bonds and interest rates.
A basis point is one one-hundredth of a percentage point (.01).
Bond traders and brokers regularly use basis points to state concise differences in bond yields.
apps.nasd.com /investor_Information/smart/bonds/107100.asp   (233 words)

  
 Quarter-point
A quarter point means 25 basis points or 0.25%.
In other words 25 basis points (bps) is a quarter point.
Further to rwiles's explanation about interest rates and exchange rates, what I do to avoid mistakes is just raise the figure given by the basis point given by adding the basis point to the given figure, depending on the number of figures after the point.
www.englishforums.com /English/QuarterPoint/qpvd/Post.htm   (1036 words)

  
 Basis Point - BPS
A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument.
The basis point is commonly used for calculating changes in interest rates, equity indexes and the yield of a fixed-income security.
So, a bond whose yield increases from 5% to 5.5% is said to increase by 50 basis points; or interest rates that have risen 1% are said to have increased by 100 basis points.
www.investopedia.com /terms/b/basispoint.asp   (280 words)

  
 rediff.com: RBI cuts repo rate by 50 basis point to 6%
The Reserve Bank of India on Tuesday lowered the repo rate by 50 basis points to 6 per cent from 6.5 per cent and accepted one bid for Rs 200 at the revised rate.
According to an RBI release, the bank received four bids for an aggregate amount of Rs 74.05 billion out of which one bid was accepted.
The last time the RBI cut the repo rate was on may 28, 2001 when it slashed it by 25 basis points to 6.50 from 6.75.
www.rediff.com /money/2002/mar/05rbi1.htm   (267 words)

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