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Topic: Forward starting swap

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Exotic interest rate option

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	FDIC: FIL-20-95
		Forward contracts represent agreements for delayed delivery of financial instruments or commodities in which the buyer agrees to purchase and the seller agrees to deliver, at a specified future date, a specified instrument or commodity at a specified price or yield.
		Swaps are transactions in which two parties agree to exchange payment streams based on a specified notional amount for a specified period.
		A cross-currency interest rate swap is a transaction in which two parties agree to exchange principal amounts of different currencies, usually at the prevailing spot rate, at the inception of an agreement which lasts for a certain number of years.
	www.fdic.gov /news/news/inactivefinancial/1995/fil9520a.html (14475 words)

	Interest rate swap - Wikipedia, the free encyclopedia
		In the field of derivatives, a popular form of swap is the interest rate swap, in which one party exchanges a stream of interest for another party's stream.
		By swapping interest rates, a company is able to alter their interest rate exposures and bring them in line with management's appetite for interest rate risk.
		The swap requires from one party a series of payments based on variable rates, which are determined at the agreed dates of each payment.
	en.wikipedia.org /wiki/Forward_starting_swap (938 words)

	Municipal Derivatives and Taxation — Current Topics
		If this swap is terminated in connection with the issuance of the hedged bonds, then any termination payment made or received by the issuer is taken into account in the issue price and sales proceeds of the hedged bonds.
		A forward starting hedge is a hedge whose economic effect does not commence until a future date.
		If the issuer intends to terminate the swap in one year, then it will make a payment to, or receive a payment from, the counterparty based on the difference between forward swap rate agreed between the parties today and the current swap rate that exists in the market in one year’s time.
	www.hklaw.com /Publications/OtherPublication.asp?ArticleID=3446 (2027 words)

	Mitigating Interest Rate Risk In Today’s Low Yield Environment
		The swap agreement is a contractual obligation between a financial institution and a borrower to exchange net future interest payments based on an agreed notional principal amount.
		Forward starting swaps, for example, enable floating rate borrowers to continue to benefit from low short-term rates while committing now to pay a fixed rate to begin in the future.
		The difference between swap rates and Treasury rates are swap spreads, which widen and narrow, based on the activity of hedgers.
	www.bofabusinesscapital.com /resources/capeyes/a11-02-132.html (1261 words)

	Swap Rates and how to profit using them - Online Forex FX Trading - Performance Forex - www.eforex-asia.com
		FX Swaps are a regular tool used by banks and financial institutions in the course of business.
		A typical Swap involves two parts, a spot transaction to acquire the currency desired and a reversed forward transaction to revert back to the original currency.
		The Swap facility of FX Station is a natural feature of deferred Spot FX trading, in buying one currency against another a trader either gains or is penalized by the prevailing interest rates between the two currencies.
	www.eforex-asia.com /swap_rates.html (266 words)

	New Jersey Housing and Mortgage Finance Agency \| Rate Lock
		The forward starting swap reservation fee is not refundable if the project does not close with the mortgage interest rate and mortgage term locked into.
		Once entered into, the forward starting swap mortgage interest rate is locked and can't be changed.
		The maximum mortgage term on tax-exempt rate locks (both forward starting swaps and swaptions) is 35 years. 40 year mortgage terms are not available on tax-exempt rate locks.
	www.state.nj.us /dca/hmfa/biz/devel/multi/lock.html (502 words)

	Exotic Swaps
		Just as its name suggests, the delayed start swap is a regular plain vanilla swap exchanging cash flows in one index against cash flows in another index with the exception that the start date of the swap is not immediate.
		Recall that the swap curve is the yield curve used to price interest rate swaps, reflecting both the general level of risk-free interest rates and the credit spread or swap spread in the interbank market attributable to the credit risk of default over the life of the swap.
		The indexed principal swap is a variant in which the principal is not fixed for the life of the option but tied to the level of interest rates.
	www.finpipe.com /exswaps.htm (924 words)

	Affordable Housing Finance
		But swaps are gaining appeal as rates rise because they offer this synthetic fixed rate and remove the cash outlay necessary for the initial and replacement caps.
		The forward-starting swap allows a borrower to have both a floating interest rate during the construction period and a synthetic fixed rate once the swap begins.
		Forward-starting swaps work best for borrowers that understand the intricacies of a swap, and that want a fixed rate during the permanent loan period and a floating rate prior to the start of the swap.
	www.housingfinance.com /ahf/articles/2005/february/swaps.html (1346 words)

	Synthetic refunding: a financial tool for a low interest-rate environment - Treasury Management - a hospital can ... (Site not responding. Last check: 2007-10-13)
		In synthetic refunding, the hospital negotiates a "forward swap": it agrees today to enter into a "fixed-pay" swap contract that will start at the call date of the outstanding bonds.
		The forward premium is essentially equal to the swap provider's cost of carrying the forward commitment through the call date.
		The forward starting swap rate will always be higher than what the hospital could achieve in the spot market, but the increase should be reasonably limited to the provider's actual cost of carrying the forward commitment.
	findarticles.com /p/articles/mi_m3257/is_5_57/ai_101568773 (863 words)

	PRAXAIR 2000 Annual Report
		Interest rate swaps are entered into as a hedge of underlying financial instruments to effectively change the characteristics of the interest rate without actually changing the financial instrument.
		At December 31, 2000, the interest rate swap agreements convert outstanding floating rate debt and lease payments to fixed rate payments for the period of the swap agreements.
		At December 31, 2000 after adjusting for the effect of interest rate swap agreements (including the forward starting swaps), Praxair has fixed rate debt of $2,566 million ($2,114 at December 31, 1999) and floating rate debt of $575 million ($881 million in 1999) or about 82% and 18%, respectively, of total debt.
	www.praxair.com /2000/annual/praxair_standard/markrisk.html (717 words)

	RRE's Eclipse 2g Turbo to 1g Head Swap Tips
		Swapping a first generation cylinder head onto a second generation Eclipse.
		In the end of the cam there is a dish shape that makes starting the drill in the center easy.
		Swapping just the throttle body gives great response and increased top end power too, even with the stock turbo.
	www.roadraceengineering.com /1g2gheadswaptechtip.htm (1447 words)

	School Districts (Site not responding. Last check: 2007-10-13)
		PFM assisted Owen J. Roberts School District with a $60 million forward starting interest rate swap agreement in November of 2003 with settlement in May, 2005.
		If a traditional forward settling fixed rate bond issue was done in November, 2003 for settlement in May, 2005, the Underwriter estimated that the fixed rate would have been 5.80%.
		The index used on the swap was 67% of LIBOR, which reduced the fixed coupon by XX basis points relative to a comparable BMA indexed interest rate swap.
	www.pfm.com /CaseStudies/School_owen.htm (272 words)

	SL Green Realty Corporation: News
		Increased average office starting rents by 25.8% over previously fully escalated rents reflecting continued growth in rents for office leases signed during the third quarter.
		Same-store GAAP NOI on a combined basis increased by 7.5% for the third quarter when compared to the same quarter in 2005, with the wholly-owned properties increasing 11.1% to $45.3 million during the third quarter and the joint venture properties increasing by 1.5% to $24.9 million.
		Average starting office rents of $62.67 per rentable square foot for the third quarter represented a 25.8% increase over the previously fully escalated rents.
	www.shareholder.com /slg/ReleaseDetail.cfm?ReleaseID=215646 (2050 words)

	Secretary's Report - Oct. 1998 Board Meetin Minutes (Site not responding. Last check: 2007-10-13)
		WHEREAS, by means of a forward starting interest rate swap, the corporation may be able to take advantage of current low interest rates and establish an interest floor which will lock in savings, the present value of which is estimated to be approximately $2.7 million;
		FURTHER RESOLVED, that the actions of any officer or agent of the corporation that are within the authority conferred by the foregoing resolutions, including any action taken prior to the adoption of these resolutions be, and such actions hereby are, ratified, approved and confirmed in their entirety.
		She brought forward a motion from the Committee to recommend that Deloitte and Touche be engaged for the FY98 audit.
	www.ucar.edu /governance_old/meetings/jan99/minutes.htm (1973 words)

	PRAXAIR 2000 Annual Report
		As summarized in Note 5, at December 31, 2000, Praxair has interest rate swap or forward starting swap agreements outstanding with a notional value totaling $780 million.
		Of these, swaps with notional amounts totaling $700 million have been designated as, and are effective as, hedges of outstanding debt instruments or lease obligations.
		The Company also has currency exchange forward contracts outstanding with notional amounts totaling $248 million which are effective economic hedges but, are not designated as hedges for accounting purposes.
	www.praxair.com /2000/annual/praxair_standard/sumacctpol2.html (800 words)

	George K. Baum
		This chart presents the premiums associated with various types of forward delivery transactions.
		The top matrix outlines projected premiums to be added to the insured MMD scale when an issuer uses a forward delivery fixed rate bond deal.
		The lower matrix presents premiums that would be added to the BMA swap rates if the issuer were to use a forward-starting BMA swap to lock in its borrowing costs ahead of a bond issuance.
	www.gkbaum.com /education/tools_derivit_detail.cfm?SHOW=forwardPrem (73 words)

	Swap-bot - Welcome
		This swap will be open to international participants as well, so you MAY get an international partner.
		I'll be starting a flickr account for this group (http://www.flickr.com/groups/redaquaswap/), so when you receive your items in the mail, please post photos of it in the group.
		Well, I tried to make something special for my swap buddy that I thought she would like, not something I liked (which is what I put together and decided not to send).
	www.swap-bot.com /swap/show/631 (2512 words)

	LinksManager.com How to Start a Successful Swap Links Campaign
		Starting a successful swap links campaign is the single best thing you can do to create an ever increasing flow of new, quality traffic to your website.
		Also, starting and marinating a reciprocal links campaign is inexpensive compared to other forms of internet promotion, like placing banner ads or paying for higher search engine placement.
		A swap links letter is the email sent by you to the webmaster of another website asking for a link swap.
	linksmanager.com /startswapping.html (1882 words)

	ITEM 126-2005-R0105
		All but two of the 8 respondents to the RFP wrote extensively about their use of interest rate swaps, synthetic fixed rate structures and other derivative financings for other universities and provided specific examples of the benefits for such with these universities.
		AG Edwards, ultimately selected the winner of the RFP search process, specifically described and modeled a forward starting swap as a means of capturing currently low rates in a rising rate environment.
		Requiring in the swap agreement that collateral be posted in the event of a rating downgrade of the swap county party;
	www.montana.edu /wwwbor/ITEM126-2005-R0105AttB.htm (751 words)

	5.0 Engine Swap
		The '85 HO motor was a big step forward for Ford in a number of areas.
		starting in 1990 are beefier than earlier versions.
		To start the swap, I pulled the stock motor.
	eelink.net /~p-nowak/bronco/html/5.0_engine_swap.html (1529 words)

	Forward rate agreement - Wikipedia, the free encyclopedia
		In finance, a forward rate agreement (FRA) is a forward contract in which one party pays a fixed interest rate, and receives a floating interest rate equal to a reference rate (the underlying rate).
		The Fixed Rate and Reference Rate are rates that should accrue over a period starting on the termination date, and then paid at the end of the period.
		However, as the payment is already known at the beginning of the period, it is also paid at the beginning.
	en.wikipedia.org /wiki/Forward_rate_agreement (297 words)

	gmane.comp.finance.quantlib.user
		I am trying to bootstrap a curve and find that today when processing the 2 yr swap point the actual 4th coupon should be from 6/23/2008-12/22/2008, however in the Xibor forecasting logic it's trying to forecast the rate for 6/23/2008-12/23/2008.
		At this point in the boostrap 12/23/2008 is one day beyond the end of the term structure and thus there is no discount rate and the bootstrap does not succeed.
		If I had a 1 yr forward starting swap on 6/23/2008 it would have 12/23/2008 as the end of the first coupon, so it seems the mapping from coupon start date to coupon end date is not 1:1, but that multiple end dates can map into the same start date.
	blog.gmane.org /gmane.comp.finance.quantlib.user (1449 words)

	The Low End Mac Swap List
		LEM Swap is not a discussion list, so discussion is prohibited unless the List Mom initiates it.
		Keep in mind that the swap list is generally the best place to list items for sale, since it has more subscribers than any of the other lists.
		That said, the swap list is a very busy list, and we don't think anyone should have to subscribe just so they can sell a personal item or system, so we do allow posting of items for sale on all lists - but only when they are specifically related to that list.
	lowendmac.com /lists/swap.html (3938 words)

	Somebody Turn on the Lights
		Consequent-ly, the contract captures the economic value of a swap without producing the actual swap cash flows, similar to a bond future capturing the economic value of a bond but without producing the actual coupon flows of that bond." Two contracts are offered: for five years and for 10 years.
		Although capital adequacy requirements and improved liquidity ratios are a step forward, there is insufficient recognition in our regulatory regime that it’s the weak creditor, not the weak debtor, who threatens the system—the inability of the borrower to pay matters systemically only to the extent that the lender cannot afford not to be repaid.
		Good brokers have never been willing to do business with big clients unless they know from the start how many shares are to be accumulated or sold; in the age of electronic brokerage, such information must be posted.
	www.brookings.edu /views/articles/mayer/199911.htm (2926 words)

	Swap-bot - Welcome
		To sign up for this swap, click the link at the bottom of the page and follow the instructions.
		Each recipient will be able to share with their swap partner what craft he or she likes to do best, so the partner has an idea of what to include in the yarn ball.
		Each participant is strongly encouraged to post at least one picture on the flickr page for this swap.
	www.swap-bot.com /swap/show/234 (1100 words)

	S14 5-Speed Swap
		Mount the master cylinder to the pedal assembly.
		Once you have removed the larger brake pedal, installing the smaller pedal is straight forward.
		The top connector with two female blade connections needs to be jumpered for the car to start.
	www.240sx.org /links/installs/s14_5speed_swap.htm (1138 words)

	Herb Greenberg: Talking Sears, Gottschalks
		And the big risk, when big profits come swiftly from something as risky as a bet on a derivative, is that big losses can come equally swift if the bet doesn't go just right.
		It is certainly HIGHLY UNUSUAL for a public operating company to invest in "Total Return Swap Income" derivatives.
		It is also highly unusual for the Chairman of a public company to apparently spend a large amount of his time as a "stock picker".
	blogs.marketwatch.com /greenberg/2006/11/talking_sears_g.html (1313 words)

	TechHackers - Financial software products - QuantTools: Interest Rate Options
		Sensitivities of a European, Bermudan, or American swaption on a forward starting swap
		Implied volatility for a European, Bermudan, or American swaption on a forward starting swap
		Price of a European or Bermudan swaption on a forward starting swap using the BDT model
	www.thi.com /financial_software/quant_func_iro.shtml (146 words)

	Investor's Business Daily: Breaking News
		And since additional increases in short-term interest rates are still a possibility, and given it is currently less expensive to borrow longer-term fixed rate funds on a hedged basis, management continues to limit its exposure to possible interest rate changes by closely matching the duration of its hybrid ARMs and hedged borrowings.
		We added $2.9 billion of net new swap agreements and $4.8 billion of new forward starting swap agreements to adjust the duration of our liabilities to continue to match the duration of our assets, including new asset acquisitions, swap maturities and terminations.
		As a result, our portfolio duration during the quarter decreased from six months to negative one month in response to the decline in interest rates at the end of the third quarter combine with our increased hedge position."
	investors.com /breakingnews.asp?journalid=44339334 (2599 words)

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