Exchange Currency

forward spread agreement

A specialized forward rate agreement that protects the parties from future changes in the spread between interest rates involving different currencies. An indexed rate, plus or minus the agreed spread, is used at settlement. It can also be a forward that settles at a basis between two previously agreed upon rates.

Related information about forward spread agreement:
  1. What is forward spread agreement? definition and meaning
    Definition of forward spread agreement: A specialized forward rate agreement that protects the parties from future changes in the spread between interest rates ...
     
  2. Forward Spread Agreement
    The Forward Spread Agreement is an innovative product, which allows the customer to take position on the spread between the government T-bond yield curve ...
     
  3. Forward Spread Agreement
    (1) A specialized forward rate agreement which settles at the index rate (usually LIBOR) at the time of settlement plus or minus an agreed spread. (2) A forward ...
     
  4. Financial Derivatives Terms and Definitions, Fair Value | FINCAD
    Forward Spread Agreement: The counterparties of a forward spread agreement contract into a spread between two forward rate agreement rates applied to a ...
     
  5. What Is a Forward Spread?
    Some investors may protect themselves from changes in the spread by signing a forward spread agreement. It can be used to lock in a range of rates between ...
     
  6. What does FSA stand for? | FSA meaning
    FSA definition: Fabless Semiconductor Association (SAUO) Fabric Salesmen's Association (EA) Faculty Student Association (SAUO) Failing Storage Address ...
     
  7. Derivative and Hybrid Terms
    Forward spread agreement: The counterparties contract into a spread between two forward rate agreement rates applied to a nominal amount of one currency.
     
  8. Forward Purchase Agreements - DerivActiv.com - Financial Term ...
    FORWARD SPREAD AGREEMENT. A contract in which counterparties contract into a spread between two variable rates, usually Libors, applied to a nominal ...