Forward sale

Forward sale

A method for hedging price risk that involves an agreement between a lender and an investor to sell particular kinds of loans at a specified price and future time.

Forward Sale

1. The sale of a future loan in which the lender (seller) guarantees an investor a certain payment flow and interest rate. This is usually done to hedge against the investor's future foreign exchange risk and interest rate risk.

2. In Islamic banking, the purchase of and payment for a specified good or service at a price usually lower than market value, with delivery deferred until a set future date. A bank buys a commodity before it is grown or manufactured, then may re-sell it to a third party in order to turn a profit on the transaction. This is used as a form of financing for farms and businesses, and is governed by a salam contract.
References in periodicals archive ?
The company expects to enter into forward sale agreements with Bank of America, N.
Oriental categorically denies that the forward sale of crude oil transaction of $100 million in July 2012 was a "loan" as mischaracterized by the Afren press release.
The Bruce Golding led administration has been slapped with another massive bill arising from the controversial deal for the forward sale of bauxite, reports The Jamaica Gleaner (Nov.
As part of the offering, BNY Mellon expects to enter into a forward sale agreement with Goldman, Sachs & Co, the forward purchaser.
This was an exciting transaction due to the forward sale component, whereby we began to market the asset in the summer of 2005 before construction had commenced," commented Dunne.
DTZ Debenham Tie Leung has completed the forward sale of Unit 4 Cefn Coed Business Park, Parc Nantgarw, on behalf of Cardiff developers Charnwood.
Disney announced Wednesday that a family trust he established has entered into what is essentially a forward sale of a portion of the shares in The Walt Disney Co.
Chairman Don Tyson, has entered a prepaid forward sale of sell 3 million shares of the company's Class A common stock.
engages in a forward sale to a customer, committing to sell 1,000 units at a fixed price of $10 per unit, with a Dec.
Subject to certain conditions, all shares are being offered in connection with the execution by the Company of one or more forward sale agreements described below.
00 per share, all of which are being offered in connection with the forward sale agreements described below.
In connection with the common stock offering, Exelon entered into forward sale agreements with an affiliate of Barclays Capital Inc.

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