A forward rate agreement is a contract, based on a notional principal, between two parties to exchange interest at some defined future date based on the difference between two different benchmark rates. These benchmark rates may be floating, such as an interbank rate, or fixed. It is easiest to explain most of these derivatives using [...]
Fundamental Deterioration — The Local Currency Becomes Volatile [theory]
Fundamental investors and speculators do not necessarily sit easily together. They have different investment aims and parameters, the first looking for regular investment capital gain or income over time, the latter looking frequently for short, quick moves. Granted, this is a gross exaggeration and generalization, but it gives at least something of a flavour for [...]