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Reset (finance)

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22: 151:, to determine the value of the floating rate payment for each period. The parties will have agreed a source for the reference rate (usually a named screen on an information vendors system, though any public domain source will do, such as a newspaper or government publication). Fixing involves looking up the reference value on the agreed date, recording, then computing a payment based on the rate. 166:
type swaps, where periodic payments are made on the basis of simple composition or average of overnight interest rates observed during each coupon period.
94: 66: 158:, and can be difficult to encode in the software models used to price such instruments. Other examples of fixing are in 113: 73: 51: 43: 80: 47: 62: 144:, usually in order to calculate the settlement value of a periodic payment schedule between two parties. 183: 32: 36: 163: 155: 87: 8: 148: 137: 134: 141: 177: 159: 162:, where the underlying of the option is an average of some kind, and in 21: 175: 140:, meaning the determination and recording of a 50:. Unsourced material may be challenged and 114:Learn how and when to remove this message 154:Fixing can often change the value of a 176: 48:adding citations to reliable sources 15: 13: 14: 195: 147:Resets are most commonly used in 20: 1: 169: 133:is a generic concept in the 7: 10: 200: 156:financial instrument 63:"Reset" finance 44:improve this article 149:Interest rate swaps 184:Financial markets 138:financial markets 124: 123: 116: 98: 191: 119: 112: 108: 105: 99: 97: 56: 24: 16: 199: 198: 194: 193: 192: 190: 189: 188: 174: 173: 172: 120: 109: 103: 100: 57: 55: 41: 25: 12: 11: 5: 197: 187: 186: 171: 168: 142:reference rate 129:also known as 122: 121: 28: 26: 19: 9: 6: 4: 3: 2: 196: 185: 182: 181: 179: 167: 165: 161: 160:asian options 157: 152: 150: 145: 143: 139: 136: 132: 128: 118: 115: 107: 104:December 2009 96: 93: 89: 86: 82: 79: 75: 72: 68: 65: –  64: 60: 59:Find sources: 53: 49: 45: 39: 38: 34: 29:This article 27: 23: 18: 17: 153: 146: 130: 126: 125: 110: 101: 91: 84: 77: 70: 58: 42:Please help 30: 170:References 74:newspapers 31:does not 178:Category 88:scholar 52:removed 37:sources 131:fixing 90:  83:  76:  69:  61:  127:Reset 95:JSTOR 81:books 67:news 35:any 33:cite 164:OIS 46:by 180:: 135:EV 117:) 111:( 106:) 102:( 92:· 85:· 78:· 71:· 54:. 40:.

Index


cite
sources
improve this article
adding citations to reliable sources
removed
"Reset" finance
news
newspapers
books
scholar
JSTOR
Learn how and when to remove this message
EV
financial markets
reference rate
Interest rate swaps
financial instrument
asian options
OIS
Category
Financial markets

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