Forward rate agreement

(redirected from Forward rate agreements)
Also found in: Wikipedia.

Forward rate agreement (FRA)

Agreement to borrow or lend at a specified future date at an interest rate that is fixed today.

Forward Rate Agreement

An agreement between two parties to exchange two currencies or interest rates at a given rate at some point in the future. A forward rate agreement mitigates foreign exchange risk or interest rate risk for the parties. It is most useful when both parties have operations or some other interest in a country using a given currency or investment vehicle with a floating interest rate. Forward rate agreements are over-the-counter contracts and are also called future rate agreements.
References in periodicals archive ?
This latest investment in CFD processing functionality follows the recently-announced addition of FX forwards, non-deliverable forwards (NDFs) and forward rate agreements (FRAs) to Gloss, and forms part of a substantial investment programme that includes the continued broadening of the Gloss solution's instrument coverage.
The new multi- currency system also allows portfolio managers to incorporate currency forward rate agreements into their analyses, showing overall exposure on a hedged and unhedged basis.
This includes post-execution transaction processing for FX forwards, non-deliverable forwards (NDFs) and forward rate agreements (FRAs).
The first guarantee covers all of NWMA's foreign-exchange transactions; the second covers interest rate swaps, forward rate agreements, interest rate options, bond options, or options on any of these transactions to designated counterparties.
Product types include caps/floors, forward rate agreements, options, swaps, swaptions, and cross currency swaps.
The easy adaptability of the software has allowed Infinity to deliver a system that supports local market conventions in South Africa, including bond pricing, settlements and forward rate agreements.
Part VI Forward Rate Agreements and Forward/Forward Agreements 1.
Nasdaq: BARZ), a leading provider of analytical models, software, consulting and money management services, and Prebon Yamane, a premier institutional broker widely recognized as a leader in interest rate derivatives, today announced that they plan to launch POSIT-FRA -- the first computer-based system for crossing forward rate agreements (FRAs).
The IR TRR holds summary transaction-level information for the full range of non-cleared OTC derivative interest rate transactions, including caps/floors, forward rate agreements, options, swaps, swaptions, and cross currency swaps.
Societies have cash deposits and are counterparties for interest rate swaps, and forward rate agreements with the merchant bank.
Offers advanced pricing and analytic capabilities including Greeks and support for: IR swaps and swaptions, IR caps and floors, Forward rate agreements.
Interest rate and currency risks between assets and liabilities are neutralized by the active use of swaps and forward rate agreements.