What Are Reference Rates For is popular PDF and ePub book, written by Divya Kirti in 2017-01-27, it is a fantastic choice for those who relish reading online the Business & Economics genre. Let's immerse ourselves in this engaging Business & Economics book by exploring the summary and details provided below. Remember, What Are Reference Rates For can be Read Online from any device for your convenience.
What Are Reference Rates For Book PDF Summary
What is the precise role of reference rates? Why does it matter if LIBOR was manipulated? To address these questions, I analyze the use of reference rates in floating-rate loans and interestrate derivatives in the context of lending relationships. I develop a simple framework combining maturity transformation with three key frictions which generate meaningful funding risk and a rationale for risk management. Reference rates like LIBOR mitigate contractual incompleteness, facilitating management of funding risk. As bank funding costs move with bank credit risk, it makes sense for the reference rate to have a bank credit risk component. Manipulation can add noise, reducing the usefulness of reference rates for this purpose.
Detail Book of What Are Reference Rates For PDF
- Author : Divya Kirti
- Release : 27 January 2017
- Publisher : International Monetary Fund
- ISBN : 9781475572315
- Genre : Business & Economics
- Total Page : 45 pages
- Language : English
- PDF File Size : 17,8 Mb
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