Kendara
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I am reading an analyst's research note and have come across an unfamiliar term.
What is "basis paying interest" ?
It appears in the following context:
Going into early 2010, upward pressures on short-term rates will develop on shorter maturities, leading to a steeper Eonia curve on the 6-18m segment. This is likely to reduce basis paying interest.
Does anyone have any idea?
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Fri Dec 04, 2009 6:04 am |
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coaster
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I have no idea what he's saying there but basis is the principal, or invested capital, adjusted for any factors that affect it, so I'm guessing he's saying something's going to reduce the interest earned because it's going to affect the amount on the books that's producing interest. Something like that, anyway.
~Tim~
Eye Candy : Why Whimsy
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Fri Dec 04, 2009 6:43 am |
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coaster
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I'm really not that confident about my wild guess. I spent some time with search engines this morning, and I cannot find a definition. But what I got from my search is that the meaning is entirely dependent on the context. Here's a link that you might find interesting, if you can access it -- it was a cached page, not a live page:
http://www.riskglossary.com/link/discount_instrument.htm
~Tim~
Eye Candy : Why Whimsy
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Fri Dec 04, 2009 3:41 pm |
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