plain-vanilla


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Related to plain-vanilla: Plain vanilla swap

Interest Rate Swap

The exchange of interest rates for the mutual benefit of the exchangers. The exchangers take advantage of interest rates that are only available, for whatever reason, to the other exchanger by swapping them. The two legs of the swap are a fixed interest rate, say 3.5%, and a floating interest rate, say LIBOR + 0.5%. In such a swap, the only things traded are the two interest rates, which are calculated over a notional value. Each party pays the other at set intervals over the life of the swap. For example, one party may agree to pay the other a 3.5% interest rate calculated over a notional value of $1 million, while the second party may agree to pay LIBOR + 0.5% over the same notional value. It is important to note that the notional amount is arbitrary and is not actually traded. This is also called a plain vanilla swap.

plain-vanilla

Of or relating to the uncomplicated version of a particular type of security. For example, a plain-vanilla derivative is typically exchange-traded and void of bells and whistles. Likewise, a plain-vanilla bond is not convertible and cannot be called.
References in periodicals archive ?
Lenders need to see strategic cost takeout not as a short-term fad driven by temporary market conditions, but as a permanent imperative for profitability in an era of plain-vanilla mortgages.
Serial ATA is a variation on ATA that enables throughput specs to rival plain-vanilla SCSI, at a lower cost.
Beginning in 2003, Clinica Alemana--once a small island of exclusivity for a few-will begin to provide something much closer to what most Chileans need: a plain-vanilla family doctor who can spot problems coming, and save money for patients.
Constructing cafes and other areas in which students and faculty can congregate (and purchase more goods) is another way to turn a plain-vanilla campus bookstore into a "campus center," and thus, increase sales, says Crosson.
An added benefit is that, traditionally, membership programs draw higher renewal rates than plain-vanilla subscriptions.
The CEO's office -- whether a mahogany-paneled library or a plain-vanilla cubicle -- is a bully pulpit for change.
Also, the kinds of debt instruments being issued electronically tend to be simpler, more "commoditized" products like plain-vanilla commercial paper, medium-term notes and bonds.
That might sound like a pretty plain-vanilla message coming from an L.
Instead, Williams Capital works with more plain-vanilla financial instruments, such as corporate and agency bonds and securities on the fixed-income side.
Our requests for consultation had to do with major changes in our organizational evolution from a classical, plain-vanilla staff-model HMO to a full, 31-flavor, integrated managed care system.
Local issue of plain-vanilla subordinated debentures under the code 'BANORTE 09' to 'A+(mex)' from 'AA(mex)'.
Futures contracts will be traded daily for deliveries 15 months later of 27-ton lots of four plain-vanilla grades: one g-p butene LLDPE for blown film and three PP homopolymers--two for injection (12 and 20 MFR) and one for "raffia" fiber extrusion.