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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

References in periodicals archive ?

Indeed, even plain-vanilla, equity index ETFs may present risks that are not always anticipated or fully understood, as evidenced by the events of Aug.

ETFs Need 'Holistic' Regulation: SEC's Stein

Those clients, and estate planners with delayed-effective-date, plain-vanilla annuities, need to complete their transactions in the next few months, to obtain the tax benefits under the old rules.

Private annuity transactions shut down

LME contracts hedge only a few plain-vanilla grades of polyolefins that are expected to parallel price moves in higher-value grades.

Four ways to fight sky-high resin prices: there are lots of ways to economize on resin costs, but here are four that you may have overlooked: negotiating smarter resin contracts, buying "futures," using recycled resins, and more efficient purging aids. The main idea is to give yourself more choices, no matter what direction resin prices go

Laptop PCs have come down so much in price that you can pick up a usable brand new (but plain-vanilla) model for less than $700.

Laptop, tablet, SmartPhone, or PDA?

For 2005, Springfield is introducing a wide-body version of its plain-vanilla GI pistol with a large-capacity magazine.

Building on traditional pistols

Inaccurate detail in the artwork and the plain-vanilla dialogue can only mean one thing: The cartoonist has become complacent."

Brownshoes in Action comix: "the kind real aviators like"

Serial ATA is a variation on ATA that enables throughput specs to rival plain-vanilla SCSI, at a lower cost.

Is "small" still beautiful? (First In/First Out)

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.

Rich clinic, poor clinic: looking for efficiency, public hospitals in Chile go head-to-head with private providers. (Healthcare)

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.

The big-business bookstore: with innovation, strategic thinking, and some seat-of-the-pants risk-taking, Cornell and Beloit are turning the quiet campus bookstore into big business. (Campus Bookstores)

An added benefit is that, traditionally, membership programs draw higher renewal rates than plain-vanilla subscriptions.

Lee Smith builds empire (and 42,000 sq. foot facility) on state law letters. (Publisher Profile)

The CEO's office -- whether a mahogany-paneled library or a plain-vanilla cubicle -- is a bully pulpit for change.

There's a New Chief in Town

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.