Interest rate agreement

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Interest rate agreement

An over the counter agreement whereby one party, for an up-front premium, agrees to compensate the other at specific time periods if a designated interest rate (the reference rate) is different from a predetermined level (the strike rate.) Also called a FRA (pronounced like ‘draw’) or forward rate agreement.

Interest Rate Agreement

A transaction between two investors in which one (Investor A) agrees to compensate another (Investor B) if a certain variable interest rate, known as the reference rate, rises above some agreed-upon strike rate. Investor A makes this compensation at certain periods of time over the life of the agreement each time the reference rate exceeds the strike. In exchange, Investor B gives Investor A a premium or purchase price for the agreement. See also: Interest rate swap.
References in periodicals archive ?
The framework agreement will not include loans in the obligation and certificates market and interest rate agreements.
Called swaptions for short, these interest rate agreements are usually designed to cushion debt payments in case interest rates rise.
119 specifically mentions -- * interest rate swaps * interest rate caps * forward interest rate agreements * option contracts * interest rate collars * interest rate floors * futures contracts * fixed rate loan commitments * commitments to purchase stocks or bonds
GAAP earnings also include valuation adjustments for certain of our assets and interest rate agreements - we exclude them from core earnings.
The framework agreement will not include loans in the obligation and certificate market and interest rate agreements.
The framework agreement will not include loans in the obligation and debenture market and interest rate agreements.
Treasury securities 0 0 33,485 Interest rate agreements 1,189 2,037 1,627 Cash and cash equivalents 12,539 19,881 40,948 Restricted cash 2,445 5,384 11,182 Investments in and loans to Holdings(a) 4,795 10,363 26,481 Receivables and other assets 18,240 14,858 18,371 Total assets $ 2,427,603 $ 2,419,928 $ 2,456,974 Short-term debt $ 922,405 $ 1,253,565 $ 1,033,643 Long-term debt 1,282,756 945,270 1,171,141 Payables and other liabilities 12,742 11,158 7,991 Preferred stockholders' equity 26,517 26,517 26,736 Common stockholders' equity 183,183 183,418 217,463 Total liabilities and stockholders' equity $ 2,427,603 $ 2,419,928 $ 2,456,974 Common shares outstanding at end of period 8,789,377 8,783,341 10,186,317 Reported book value per common share $ 20.
Treasury securities - 48,009 - Interest rate agreements 2,037 2,517 2,100 Cash and cash equivalents 19,881 55,627 24,892 Restricted cash 5,384 12,857 24,657 Receivables and other assets 25,221 42,575 25,926 Total assets $2,419,928 $2,832,448 $3,444,197 Short-term debt $1,253,565 $1,257,570 $1,914,525 Long-term debt 945,270 1,305,560 1,172,801 Payables and other liabilities 11,158 14,528 22,334 Preferred stockholders' equity 26,517 26,736 26,736 Common stockholders' equity 183,418 228,054 307,801 Total liabilities and stockholders' equity $2,419,928 $2,832,448 $3,444,197 Common shares outstanding at end of period 8,783,341 11,251,556 14,284,657 Reported book value per common share $20.
As a result of accounting methodologies adopted in the third quarter of 1998, Redwood includes in its earnings the effect of mark-to-market changes for those mortgage securities for which Redwood relies on market valuations to secure short-term financing and for all interest rate agreements.
Treasury securities 33,485 48,009 0 Interest rate agreements 1,627 2,517 1,627 Cash and cash equivalents 52,129 68,484 32,202 Receivables and other assets 44,852 42,575 37,312 Total assets $2,456,974 $2,832,448 $3,713,691 Short-term debt $1,033,642 $1,257,570 $2,288,018 Long-term debt 1,171,141 1,305,560 1,081,279 Payables and other liabilities 7,993 14,528 14,696 Stockholders' equity 244,198 254,790 329,698 Total liabilities and stockholders' equity $2,456,974 $2,832,448 $3,713,691 Residential mortgage assets 99.
Treasury securities, $68 million residential mortgage loans, $8 million commercial mortgage loans, $56 million unrestricted cash, $3 million interest rate agreements, $51 million mortgage equity interests (subordinated mortgage interests created and retained by the company in the process of issuing long-term debt to fund the ownership of pools of mortgage assets), $15 million investment in Holdings, and $27 million working capital and other non-earning assets.