The bonds are secured by the trust estate pledged under the indenture, including revenues derived from the sale of natural gas and payments received from the commodity swap
Bloomberg's SEF, the first SEF to receive Commodity Futures Trading Commission approval, provides market participants with access to interest rate, credit default, foreign exchange and commodity swap
Alternatively, the institution might invest in a total return commodity swap
to gain exposure to a broad commodity index.
STRONG GUARANTED COMMODITY SWAP
PROVIDER: The commodity swap
provider is Royal Bank of Canada, Europe Limited (RBCEL).
Some governments have been involved in interest-rate swap agreements or commodity swap
agreements that have come to an end because the counterparty (or the counterparty's credit support provider) committed or experienced an act of default or a termination event as described in the swap agreement.
Is a commodity swap
regulated by the Commodities Futures Trading Commission?
The bank's role as the counterparty in the first crude oil derivatives hedge in Sri Lanka, first oil commodity swap
done in Pakistan and Bangladesh's first commodity derivatives deal reinforced the bank's experience and expertise in its footprint.
Based on a detailed analysis of the relevant legislative history, the IRS ruled that, in the absence of "conclusive authority" on the status of a swap as an Investment Company Act of 1940 ('40 Act) security, a commodity swap
does not generate RIC qualifying income.
A plain vanilla commodity swap
is based on a reference price (also known as a "fixing").
In July last year, the IRS released a technical advice memorandum outlining its position regarding the character of payments under a commodity swap
entered into by a taxpayer.
Additionally, Western Gas Partners and Anadarko have signed a five-year, fixed-price commodity swap
agreements to cover all non-fee-based system volumes to manage the commodity-price risk associated with these assets.
The rating on the securities does not factor in the rating of the commodity swap
provider, whose nonpayment is covered by RBC via a back-end commodity swap
and a custody accord, the agency concluded.