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Chapter 10
Chapter 10

... another between the parties  Usually associated with borrowing money  The exchanges can be at a fixed or a variable rate of interest as negotiated in the contract, but the exchanges occur at a known currency exchange rate  Used to hedge exchange rate risk from mismatched currencies of assets and ...
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... Solvency II is based on three pillars. Pillar 1 involves the calculation of SCR (Solvency Capital Requirement) and MCR (Minimum Capital Requirement). Pillar 2 focuses on governance issues and risk management procedure. The ORSA [Own Risk and Solvency Assessment] report provided to the regulator will ...
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Interest rate swap



An interest rate swap (IRS) is a liquid financial derivative instrument in which two parties agree to exchange interest rate cash flows, based on a specified notional amount from a fixed rate to a floating rate (or vice versa) or from one floating rate to another. Interest rate swaps can be used for both hedging and speculating.
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