Dictionary


Inside information
Material information about a company which is known by the company's board of directors, management, and/or employees but not by the public.
Interbank Rates
The interest rate that the banks charge each other for loans. This rate is applicable to the short-term international interbank market, and applies to very large loans borrowed for anywhere from one day to five years.
Interest
The fee charged by a lender to a borrower for the use of borrowed money, usually expressed as an annual percentage of the principal.
Interest Rate
Interest per year divided by principal amount, expressed as a percentage.
Interest Rate Swaps
An exchange of interest payments on a specific principal amount. This is a counterparty agreement, and so can be standardized to the requirements of the parties involved. Often, an interest rate swap involves exchanging a fixed amount per payment period for a payment that is not fixed. In an interest rate swap, the principal amount is never exchanged, it is just a notional principal amount.