Meaning COVERED INTEREST ARBITRAGE: Occurs when a portfolio manager invests dollars in an instrument denominated in a foreign currency and hedges the resulting foreign exchange risk by selling the proceeds of the investment forward for dollars
More terms such as Covered interest arbitrage in Dictionary C.
- Definition Composition:
- Examples Voluntary arrangement to restructure a firm's debt, under which payment is reduced covered interest arbitrage definition.
- Definition Current Maturity:
- Examples Current time to maturity on an outstanding debt instrument covered interest arbitrage explain.
- Definition Compounding:
- Examples The process of accumulating the time value of money forward in time. For example, interest earned in one period earns additional interest during each subsequent time period covered interest arbitrage what is.
- Definition Complete Capital Market:
- Examples A market in which there is a distinctive marketable security for each and every possible outcome covered interest arbitrage meaning.
- Definition CMO REIT:
- Examples of Real Estate Investment Trust investing in the residual cash flows of Collateralized Mortgage Obligation (CMOs). CMO cash_flows are derived from the difference between the rates paid by the covered interest arbitrage abbreviation.
