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can someone please explain this? Add-on Factors (% of Principal Remaining Maturity (yrs) Interest rate Exch Rate and Gold Equity Precious Metals except gold Other
can someone please explain this?
Add-on Factors (% of Principal
Remaining Maturity (yrs) | Interest rate | Exch Rate and Gold | Equity | Precious Metals except gold | Other Commodities |
<1 | 0.0 | 1.0 | 6.0 | 7.0 | 10.0 |
1 to 5 | 0.5 | 5.0 | 8.0 | 7.0 | 12.0 |
>5 | 1.5 | 7.5 | 10.0 | 6.0 | 15.0 |
Example: A $100 million swap with 3 years to maturity worth $5 million would have a credit equivalent amount of $5.5 million
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