The process of changing the interest rate on the leg of a currency swap being paid by the end user away from the dealer’s quoted rate upon the request of the end user to receive interest cash flow from the dealer at a rate different from the dealer’s quoted rate.
Generally speaking, basis point adjustment reflects the number of basis points that are added to, or subtracted from, a certain spread (usually on a floating leg of a transaction or agreement) to account for multiple factors including risk premium, liquidity premium/ discount, term and term structure, etc.
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