Non-deliverable Swap Nds: Overview And Examples

So, the borrower receives a dollar sum and repayments will nonetheless be calculated in dollars, but cost might be made in euros, using the current exchange price at time of reimbursement. Consequently, since NDF is a “non-cash”, off-balance-sheet item and since the principal sums do not transfer, NDF bears much lower counter-party threat. NDFs are…

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