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Topic: Interest rate options

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	Interest Rate Options
		Interest rate Options are European-style, cash-settled options on the yield of U.S. Treasury securities.
		Options are European style exercise and are available in up to three near-term months followed by three additional months from the March quarterly cycle.
		The exercise-settlement values of interest rate options (symbols above) are based on the "spot yield" on the last trading day as reported by the Federal Reserve Bank of New York at 2:30 p.m.
	www.cboe.com /Products/InterestRateOptionsSpecs.aspx (831 words)

	Interest rate options - Debt Help UK
		In this case the interest rate is fixed at outset, usually for a prescribed period at the start of the mortgage.
		If interest rates fall, however, the fixed rate will not, and the lender is likely to charge a redemption penalty if the borrower wishes to move his mortgage to another provider.
		A discounted rate mortgage is one where the interest for an initial period of the loan, commonly one or two years, is charged at a lower rate than that which would normally apply.
	www.debthelpuk.co.uk /interest-rate-options.html (605 words)

	SAFA - Interest Rate Derivatives
		Interest rate swaps allow agencies to change the nature of their interest rate obligations by swapping them into fixed rates or floating rates with a different frequency.
		Interest rate bank bill futures allow agencies to hedge short-term interest rates for periods of 3 months, and bond futures allow agencies to hedge long-term rates for periods of 3 or 5 years.
		Interest rate futures are traded on the Sydney Futures Exchange and trade in fixed face value amounts and fixed dates.
	www.safa.sa.gov.au /financial_markets/psa_interest_rate_derivatives.html (286 words)

	Absa - Home Loan Interest Rate Options
		Interest is calculated on the daily outstanding balance of your loan and capitalised monthly on your repayment due date.
		Make sure you monitor the variable interest rate fluctuations to prepare yourself should the variable rate at the end of the fixed rate contract period be much higher than the fixed rate.
		The fixed rate option may not be terminated prior to the expiry of the agreement.
	www.absa.co.za /absacoza/content.jsp?VGN_C_ID=3bb7830f83d52010VgnVCM1000003511060aRCRD&VGN_CI_ID=8f9cb5392c58a010VgnVCM1000003511060aRCRD (412 words)

	Spectrum Super \| Investment Choices - INTEREST RATE OPTIONS
		Interest Rate Options offer you the choice of investing in income bearing bank deposits.
		All members investment in these options will have restricted access to capital in the event of early retirement, disability, death and/or commutations from allocated pensions.
		Income received from the various fixed interest options will be paid into the member's nominated investment pool(s).
	www.spectrumsuper.com.au /drawpage.jsp?pageID=INVESTMENT_CHOICES&subpageID=770047 (184 words)

	Interest Rate
		Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR).
		Interest is essentially a rental, or leasing charge to the borrower, for the asset's use.
		Interest is charged by lenders as compensation for the loss of the asset's use.
	www.investopedia.com /terms/i/interestrate.asp (473 words)

	TheStreet.com: Interest-Rate Options for Bond Bulls
		For example, the December 115 call option on the Treasury futures contract is an option to buy the contract, which settled yesterday at 114 3/32, at 115, any time before Nov. 19, when the option expires.
		The nearest options offer the greatest liquidity because that's where the greatest volume is, as the CBOT's daily volume report shows.
		An options trader might look at the implied volatility of the Treasury futures (10.74 for the March contract as of yesterday) and decide it's reasonable to bet that the contract, which closed at 94 21/32 Thursday, will rise 10.74% over the next year.
	www.thestreet.com /funds/bondforum/813316.html (967 words)

	Repayment Mortgage Interest Rate Options \| Repayment Mortgages Explained
		The rate is guaranteed and remains unaltered despite changes in overall interest rates.
		The length of the fixed rate is agreed at outset between the lender and the borrower and could be anything between a few months and a few years.
		The rate of interest required by the lender will vary from time to time in line with overall interest rates.
	www.seemoney.co.uk /pages/services/mortgages/repayment_interest_rates.asp (358 words)

	Rate Options
		Prime Rate is the rate most often published in the news and is the base rate quoted by commercial banks as the rate charged their most creditworthy customers.
		The interest rate for ARMs is indexed to the weekly yield on U.S. Treasury Securities, adjusted to a constant maturity equal to the ARM terms.
		The interest rate is subject to change at the end of the repricing period.
	www.colonialfarmcredit.com /rateops.asp (511 words)

	Interest Rates Home Loan
		Interest rates have been on the rise for so long now that it's hard to remember when they weren't going up.Â Â Each time the rate shiftsÂ up.25%, thisÂ adds about $18 dollars a month to loan repayments for every $100,000 in outstanding borrowings on your mortgage.
		Are you able to accomodate the interest rate rise by curtailing extra spending byÂ doing simple thingsÂ like buying one less drink on a Friday night orÂ giving up smoking or eating muffins?Â Use the handy X Inc budgetting calculator to help you.
		Some great options and a good place to start is 12 tips that really work to pay off a loan faster or go to Save over $126,000 interest on a $300,000 home loan.Â You could well be paying higher interest rates than you need to.
	www.xinc.net.au /home_loans/interest_rates.html (1017 words)

	Interest Rate Management - HSBC Bank Canada (Site not responding. Last check: )
		An interest rate swap is simply an exchange (or swap) of fixed rate interest for floating rate interest over a predetermined time period.
		This is a popular tool for locking in a long-term rate for short-term borrowings when interest rates are low and expected to rise.
		Interest rate options allow your company to actively manage its interest rate exposure by providing a form of “insurance” against adverse market moves while still allowing you to benefit from favorable market moves.
	www.hsbc.ca /hsbc/business_en/fx-interest-risk/interest-rate-management (148 words)

	Irish mortgage interest rate options - fixed rates, variable rates, tracker rates
		The big benefit of fixed rates is that you know exactly how much your repayment will be over that period of time, regardless of what happens with interest rates generally, during that period.
		Fixed rates tend to be less flexible that variable and tracker rates, not allowing you for example, to make any additional payments or redeem the mortgage early without a penalty.
		The difference is that with tracker rates, the rate is tied into the European Central Bank (ECB) rate, and you'll know the margin that the bank is charging for the whole mortgage term at the outset.
	www.moving.ie /mortgages/interest_rate_options.asp (395 words)

	Prolink Namibia - Interest Rate Options (Site not responding. Last check: )
		A lower initial interest rate as the risk to the lender is less.
		Higher initial interest rate due to greater risk borne by the lender.
		The rates quoted below are the base rates per category, and may attract concessions depending on factors such as loan to value, size of the loan and affordability.
	www.prolinknamibia.com /interest.php (456 words)

	TheStreet.com: Why Aren't the TYX Options More Popular?
		Also, among retail investors, there isn't much interest in the bond market these days, never mind interest in hedging or speculating in the bond market, which is what interest-rate options are for.
		The CBOT's interest-rate options are on the exchange's interest-rate futures, which are linked to the price of the 30-year Treasury bond in a somewhat complex fashion discussed at greater length in previous Fixed-Income Forums on July 2 and July 30.
		The options are American-style, meaning they can be exercised at any point prior to expiration, and upon exercise, the holder winds up with a futures position.
	www.thestreet.com /funds/bondforum/842532.html (939 words)

	Interest rate derivative - Wikipedia, the free encyclopedia
		An interest rate derivative is a derivative where the underlying asset is the right to pay or receive a (usually notional) amount of money at a given interest rate.
		Interest rate derivatives are the largest derivatives market in the world.
		When most companies think of hedging against rising interest rates, their real concern is mitigating the impact of rising rates on the actual dollar interest payments on outstanding loans and debt issues.
	en.wikipedia.org /wiki/Interest_rate_derivative (470 words)

	Interest rate options - Charcol
		A fixed rate loan charges a set rate of interest for a predetermined period, and then usually reverts to the lender's standard variable rate.
		A capped rate offers you the security of knowing that your monthly payments will not rise beyond a certain level during the initial rate period, and therefore it will be easier for you to budget than it would were you on a tracker or variable rate.
		As a payback for the security of the capped rate, rates are often higher than a fixed rate and the initial cap term seldom lasts longer than 2 or 3 years.
	www.charcol.co.uk /knowledge-resources/guides/mortgage-types/interest-rate-options (897 words)

	It's your money :: Interest rate options
		This is the yearly rate of interest and includes all of the costs involved, such as set-up charges, the term of the loan and the interest rate.
		If you are in a fixed rate contract, you will face penalties if you want to switch lenders, move to a variable rate, re-mortgage or pay off all or part of your mortgage during the fixed-rate period.
		A split rate could be a good option for you if you are unsure about the direction or scale of interest rate movements but need some security.
	www.itsyourmoney.ie /index.jsp?1nID=93&2nID=94&3nID=103&pID=115&nID=289&aID=0 (921 words)

	The Hindu : Interest rate options in offing
		The Hindu : Interest rate options in offing
		Interest rate options will be launched within a couple of months,'' the SEBI Chairman, G. Bajpai, said after releasing a book on `Futures and Options' here.
		The launch of another interest rate derivative assumes importance in the wake of falling interest regime.
	www.hindu.com /2003/11/15/stories/2003111502881601.htm (122 words)

	Shelter: Interest options (Site not responding. Last check: )
		Also, if a mortgage starts with a low fixed rate of interest which will increase to the SVR after a number of years, the lender must include this in the APR calculation.
		You may be able to get a deal where you borrow part of your mortgage at the variable rate and part at a fixed rate - protecting you to some extent whether interest rates go up or down in the future.
		If the rate is discounted for the first few years, the stated APR must take into account the higher interest rate for the rest of the term.
	england.shelter.org.uk /advice/advice-226.cfm (693 words)

	[No title]
		Fixing your interest rate means that the interest payments on your Homeloan are fixed for a specific period of time, regardless of any fluctuation with European Central Bank (ECB) Rate.
		Because your interest rate is fixed, your monthly payment will remain the same for the agreed time period.
		Although you will be protected against interest rate increases during the fixed rate period; you would not see the benefit of any drop in interest rates.
	www.iibbank.ie /homeloans/firsttime/interest/?paraID=118&subMenuID=303&iconID=1 (384 words)

	SGX - Singapore Exchange Ltd.
		It offers users an advantageous means to protect their interest rate related assets and liabilities from the impact of volatility by locking in interest rates in advance.
		Options with varying strike prices and premium costs can be selected, according to the strength of a given market view, to suit the desired amount or level of protection against and exposure to probable changes in interest rates.
		Options positions can also be combined and used to match a trading or a hedging position to a given view of the market.
	www.sgx.com /psv/derivatives/futures_options/interest_rates/index.shtml (920 words)

	ANZ Home Essentials issue 01
		Repayments are mainly interest at the start of the loan, gradually shifting to principal towards the end of the loan as the balance of the loan reduces.
		At the end of the interest only term, the principal is then repaid as a lump sum, along with the final interest instalment, or you can opt to transfer to a table or reducing loan.
		Knowing whether to choose a fixed or variable interest rate loan is a matter of matching your financial circumstances, personal preference for repayment certainty and what you think is going to happen to interest rates with the options available.
	www.anz.co.nz /promo/homeessentials001/yourloan1.asp (1284 words)

	Interest Rate Options - HSBC Bank Canada (Site not responding. Last check: )
		The three basic structures are the Interest Rate Cap, Interest Rate Floor, and the Interest Rate Collar.
		A premium is paid to establish that interest rate ceiling (Cap) on a variable rate loan.
		While borrowers tend to be the primary users of Interest Rate Collars, it is also possible for investors to use them to establish a range for their short-term interest rates.
	www.hsbc.ca /hsbc/business_en/fx-interest-risk/interest-rate-management/interest-rate-options (672 words)

	Options Strategy Evaluation Tool by Peter Hoadley
		Option chains can also be imported from a simple comma delimited text file if you have access to data from providers not explicitly handled by the software.
		As well as providing a simple way of selecting options, the option chain facility also lets you compare, for a given option, spread or combination, the impact on profit and loss of increasing or deceasing strikes for a given expiry date, moving to different expiry dates for a given set of strikes, or both.
		On-line option chains are also used to produce a number of "sentiment indicators": put/call ratios (open interest and current volume), and "open interest configuration" charts, showing the open interest for puts and calls by strike.
	www.hoadley.net /options/strategymodel.htm (3189 words)

	The Mortgage Bureau Interest Rate Options (Site not responding. Last check: )
		The interest rate on the mortgage varies according to the economic conditions and actions taken by both the European Central Bank and Irish fiscal policy.
		Variable rates are subject to the vagaries of the current market rates and would be less certain than fixed rates.
		The latest innovative product introduced by lenders where the rate of interest on your mortgage tracks the ECB rate and is guaranteed to always be within a certain margin of the ECB.
	www.themortgagebureau.ie /rate_options.htm (257 words)

	Welcome to BorrowSmart.org (Site not responding. Last check: )
		With a fixed rate, your interest rate stays they same as long as you have the loan and you know exactly what your monthly payment will be.
		If rates are high when you take out your loan, choosing a variable rate might mean you’ll get a lower rate later – but there’s also the risk that your rate could go up.
		While an introductory interest rate can save you money, be sure you know exactly how much your interest rate will increase and what your monthly payment will be once the introductory rate period ends.
	www.borrowsmart.org /shopping4.asp (506 words)

	Mortgage Interest Rate Options - call 0800 801079 for independent mortgage advice
		With fixed rate mortgages, the borrower can lock into a fixed repayment cost each month over an agreed period of time and know that, irrespective of changing rates of interest, monthly payments will not be affected.
		At the end of the fixed rate term, the interest rate usually reverts to the lender's prevailing variable mortgage rate.
		A capped and collared mortgage is a variable rate mortgage which has a fixed upper rate limit (the cap) and a fixed lower rate limit (the collar).
	www.mwgb.co.uk /mortgage-interest-rate-options.html (978 words)

	NAB - How does NAB Margin Lending work?
		Interest will be automatically charged to the loan account or any other account nominated by you that is acceptable to us.
		When you elect to fix the interest rate on a portion of your NAB Margin Lending Facility, that portion is fully advanced and the proceeds are deposited into a NAB Margin Lending Cash Management Account that is automatically opened in your name.
		For interest in advance loans, you need to provide us with details of the means by which the yearly interest charge will be met, either by direct debit or cheque.
	www.nab.com.au /Personal_Finance/0,,89175,00.html (576 words)

	Interest rate options likely
		The Reserve Bank of India could introduce interest rate options in its busy season credit policy.
		Interest rate futures, which were introduced some months ago, failed to take off, as is evident from the lack of volumes.
		Options, like futures, are derivative products that give banks and primary dealers the right to buy and sell government securities to hedge their investment portfolio against interest rate movements.
	www.rediff.com /money/2003/oct/31credpol.htm (357 words)

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