Basis points

Basis Points
Basis points are the number of points often used to quote changes in yields on bonds or the difference in rates as quoted between the yields on two bonds. Basis points are the number of points equal to .

Basis points
A basis point is one hundredth of a percentage point (0.01%). Basis points are often used to measure changes and differentials in interest rates and margins.

Example of Basis Points Use
If the Central bank cut base rates by 0.25%. We often say there has been a cut of 25 basis points.
If rates were increased from 2% to 3% we say there has been a rise of 100 basis points ...

BASIS POINTS - 0.01% in yield. For example, in increasing from 5.00% to 5.05%, the yield increases by f...
BASIS PRICE - expressing a price in terms of yield to maturity or annual rate of return ...

Basis Points - The smallest measure used for quoting yields in the bond market.

Basis Points: 1/100 of 1% (0.01%).
Borrower: This is the person and/or entity that is borrowing funds from a lender and signing a lenders Promissory Note and Deed of Trust for a specific property in exchange for the lenders funds.

Basis Points
A relationship between a bond's price and a yield subdivided into hundredths. One hundred basis points equals 1 percent interest yield.
Basis Price ...

Basis points - one basis point equals 0.01% interest. For example, 25 basis points equals 0.25%.
Benchmark indices - used by fund managers and larger investors to measure the performance of a share portfolio across different indices.

Basis points: 0.01% in yield. Increasing from 5.00% to 5.05%, the yield increases by five basis points.
Bearer: Certificates (usually bonds) that are not registered in the holder's name, but are payable to the presenting party when due.

Basis points - Is given as 0.01% in yield . For example, in increasing from 6.00% to 6.05%, the yield increases by a total of five basis points.

(1) 100 basis points=1 percent.
(2) Once percent of the face value of a note or bond.
(3) In the foreign exchange market, refers to the lowest level at which the currency is priced.

English: Basis points
Español: Puntos básicos
Point de seuil:
Le niveau auquel tous les coûts supportés sont couverts. Par exemple le niveau des ventes auquel un projet dégagerait un profit nul.

BPS - Basis Points
CA - Chartered Accountant
CAA - Canadian Automobile Association ...

decline 200 basis points.
Exhibit 2 illustrates one such scenario.
Simple Scenario: Interest Rates Decline 100 Basis Points
Exhibit 2 ...

One hundred basis points add up to 1%. In other words, one basis point is 0.01%.

Parallel shift in the yield curve A shift in economic conditions in which the change in the interest rate on all maturities is the same number of basis points.

Each percentage point of yield in bonds equals 100 basis points. Basis points also are used for interest rates. An interest rate of 5% is 50 basis points greater than an interest rate of 4.5%.

Parallel shift in the yield curve A shift in the yield curve in which the change in the yield on all maturities is the same number of basis points.

Negative convexity A bond characteristic such that the price appreciation will be less than the price depreciation for a large change in yield of a given number of basis points.

For example, 10-year single A corporates were priced or trading at 130 basis points above Treasuries last night, or said diffrently, 130 is the generic credit spread for 10-year single A corporates.

Negative carry Related: net financing cost Negative convexity A bond characteristic such that the price appreciation will be less than the price depreciation for a large change in yield of a given number of basis points.

Small changes in interest rates are commonly measured in basis points.
Basket
See currency basket.
Bastable's test ...

For example, 30 basis points equal 0.30%. Yield differences among fixed income securities are stated in basis points. The smallest measure used in quoting yields on mortgages, bonds, stock, notes, etc.

Hence, the alpha is 2% or 200 basis points. Alpha is also known as the Jensen Index. Related: Risk-adjusted return.

One hundred basis points equals one point of bond yield. Interest rates also employ basis points, e.g., an interest rate of 5% is 50 basis points greater than 4.5%. Bear Someone who believes a market will decline.

This represented a premium of about 270 basis points to the five-year Canada bond yield on that date. Note that preferred shares can have customised aspects that affect their value.

Bond yields are quoted in basis points: 100 basis points make up 1% of yield.
Futures/options:measure of price change equal to one one-hundredth of one cent in most futures traded in decimal units.

These small variations are measured in basis points, or gradations of 0.01%, or one-hundredth of a percent, with 100 basis points equaling 1%. For example, when the yield on a bond changes from 6.72% to 6.65%, it has dropped 7 basis points.

Yet another possible answer is to require every bank to finance a small proportion of its assets by selling subordinated DEBT to other institutions, with the stipulation that the YIELD on this debt must not be more than so many (say 50) basis points ...

For example, if you were holding a bond issued by a third party and the bond's spread over the comparable Treasury rate were 200 basis points, you might purchase an option that pays off if the spread widens to 300 basis points.

Market recovered from low levels on rate cut of 100 basis points of Repo and Reverse Repo cut by Reserve Bank Of India.Positive statement by Mr Monteksingh Ahluwalia, Deputy Chaiman Planning Commision that growth rate would be maintainted at 7 %.

80% or 280 basis points. There is higher than normal demand for the bond today so the price goes up a little. If an investor wants to buy it today, he or will pay more than yesterday's price. By paying a higher price, the investor will earn 2.

In March 2009, following the lead of the European Central Bank (ECB), the Danish central bank, Nationalbanken, lowered lending rates by 75 basis points, which was 25 basis points more than the ECB's rate cut, to a new low of 2.

"LIBOR + x basis points", when talking about a bond, means that the bond's cash flows have to be discounted on the swaps' zero-coupon yield curve shifted by x basis points in order to equal the bond's actual market price.

To insure against default, the buyer of a CDS pays the seller a premium, whose value is denoted in basis points. In early 2010, a CDS contract on five-year Greek bonds was quoted at 394 basis points.

the same number of basis points. In other words, if the 3 month T-bill increases 100 basis points (one
percent), then the 6 month, 1 year, 5 year, 10 year, 20 year, and 30 year rates increase by 100 basis points as
well.

A shift in economic conditions in which the change in the interest rate on all maturities is the same number of basis points.

The rate hikes took short term rates to 175 basis points. Despite higher short term rates, throughout the summer long term rates have unexpectedly move downward.

A shift in the yield curve in which the change in the yield on all maturities is the same number of basis points.

In the bond market, the smallest measure used for quoting yields is a basis point. Each percentage point of yield in bonds equals 100 basis points. Basis points also are used for interest rates.

One basis point is 0.01 percent of a bond's yield. Basis points also are used for quoting differences in interest rates. An interest rate of 5 percent is 50 basis points greater than an interest rate of 4.5 percent.

Since 1980 the bank rate has been set at 1/4 of 1% (25 basis points) above the weekly average tender rate of 91-day Government of Canada treasury bills.

One hundredth (1/100) of a percentage point. In other words, one percentage point is equal to 100 basis points. The difference between an interest rate of 6.5% and 6.75% is 25 basis points.
» For more clarity on this term: ...

BASIS POINT:  100 basis points is equal to one percentage point
BEAR MARKET:  A downward trend in the stock market
BEFORE-TAX DOLLARS:  Money that has not been taxed.

For example, party A swaps $10 million at Libor plus 5 basis points for six months with party B who agrees to pay any percentage increase in $10 million invested in the S&P500.

Basis Point A basis point equals one one-hundredth of a percentage point. Therefore, 100 basis points equal one percentage point. Basis points are used to clearly describe interest rate changes.

Often one set of payments in an interest rate swap is determined by the Eurodollar (LIBOR) rate, while the other set is fixed at a rate that corresponds to the yield on a Treasury note of comparable maturity plus some additional basis points.

Base Point (or Basis Point)
One one-hundredth of one percent ( 1/100 % or 0.01 percent). Thus 25 basis points equal one-quarter of one percent, 100 basis points equal one percent.

It may be equal to 1, 5 or more basis points in terms of price. It may refer to an 1/8, 1/16, 1/32, 1/64 or other fraction of minimally acceptable change. The term is dependent on the rules of each market and exchange.

One basis point is equal to 0.01% of the yield on a bond (i.e. 100 basis points is equal to 1%).
Basis price
Price expressed in terms of yield to maturity or annual rate of return.

A shift in the yield curve in which yields do not change by the same number of basis points for every maturity. Related: Parallel shift in the yield curve.
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25% or 25 basis points - for each point you pay. But because points increase your closing costs, you may decide to choose a lender that doesn't require points if you plan to move or refinance within a few years.

50% to 4.55% they have risen by 5 basis points. In quotes of foreign exchange and commodity price rates, a basis point is often used to mean the smallest change in the price of foreign exchange quoted.

Basis Point - a unit of measure for the change in interest rates that is equal to .01 percent (for example- 100 basis points equal 1%).
Bear Market - a period when the stock market in general declines.

Nonparallel shift in the yield curve
Definition: [crh] A shift in the yield curve in which yields do not change by the same number of basis points for every Definition: /?rd=maturity"maturity. Related: Parallel shift in the yield curve.

One one-hundredth of 1 percent. Yield differences among fixed-income securities are stated in basis points
Bear Market
Prolonged period of falling prices.

Refers to the corporate bond spread for a particular credit rating and expiry. For example, 10-year single A corporates were priced or trading at 130 basis points above Treasuries last night, or said diffrently, ...

Basis Point: One one-hundredth of one percent. For example, 40 basis points equal 0.40%.

one hundredth of a percentage point. Spreads in interest rate markets are commonly quoted in basis points.
Basis Swap ...

A bond characteristic such that the price appreciation will be less than the price depreciation for a large change in yield of a given number of basis points. For example, a fixed-rate mortgage may lose value as rates go down because of prepayments.

See also: Banks, Expense, Yield curve, Values, Exercise price