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 ?
00 per share in connection with the forward sale agreements.
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.
It further requires that, after March 31, 2001, Cambior will be required to have hedges in place on a minimum of 70% of the forecasted loan-life production, in order to establish an average minimum gold price of $295/oz on all production, including the impact of the prepaid gold forward sale.
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.
Also, the company signed a forward sale agreements with Wells Fargo Bank (the forward purchaser) related to the offering, regarding an aggregate of 9,200,000 common shares covered by the offering.
Duke Energy Corporation ("Duke") announced today the closing of its underwritten public offering of 10,637,500 shares of its common stock in connection with the forward sale agreement (as discussed below), which included the underwriter's full exercise of its option to purchase up to 1,387,500 additional shares of Duke's common stock.

Full browser ?