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treasury rate lock agreement

Hungarian translation: állampapírok/kincstárjegyek hozamrögzítő szerződése

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
English term or phrase:treasury rate lock agreement
Hungarian translation:állampapírok/kincstárjegyek hozamrögzítő szerződése
Entered by: Katalin Horváth McClure

19:17 Sep 8, 2021
English to Hungarian translations [PRO]
Bus/Financial - Accounting / kiegészítő melléklet
English term or phrase: treasury rate lock agreement
Financial Instruments – the company enters into various derivative financial instruments to manage its exposure to fluctuating interest rates, currency exchange rates, commodity pricing and energy costs. Such instruments primarily include interest-rate swap and treasury rate lock agreements; currency-swap agreements; forward contracts; currency options; and commodity-swap agreements.
Sarah Agoston
Hungary
Local time: 06:06
állampapírok/kincstárjegyek hozamrögzítő szerződése
Explanation:
What Is a Treasury Lock?

A Treasury lock is a hedging tool used to manage interest-rate risk by effectively securing the current day's interest rates on federal government securities, to cover future expenses that will be financed by borrowing.

A Treasury lock can also be referred to as a bond lock.
Key Takeaways

A Treasury lock is an agreement between the company issuing a security and the investor in the security that holds or locks the price or yield of the security.
The purpose of the lock is to account for the fluctuation in Treasury bond yield that can occur between when a company proposes a transaction and when the transaction is finalized.
The strategy guarantees a set return for an investor, or creates an interest rate hedge the investor can use.
The participants in a Treasury lock either pay or receive the difference between the lock price and market interest rates.

Selected response from:

Katalin Horváth McClure
United States
Local time: 00:06
Grading comment
köszönöm
4 KudoZ points were awarded for this answer



Summary of answers provided
4állampapírok/kincstárjegyek hozamrögzítő szerződése
Katalin Horváth McClure


  

Answers


2 days 3 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
állampapírok/kincstárjegyek hozamrögzítő szerződése


Explanation:
What Is a Treasury Lock?

A Treasury lock is a hedging tool used to manage interest-rate risk by effectively securing the current day's interest rates on federal government securities, to cover future expenses that will be financed by borrowing.

A Treasury lock can also be referred to as a bond lock.
Key Takeaways

A Treasury lock is an agreement between the company issuing a security and the investor in the security that holds or locks the price or yield of the security.
The purpose of the lock is to account for the fluctuation in Treasury bond yield that can occur between when a company proposes a transaction and when the transaction is finalized.
The strategy guarantees a set return for an investor, or creates an interest rate hedge the investor can use.
The participants in a Treasury lock either pay or receive the difference between the lock price and market interest rates.




    https://www.investopedia.com/terms/t/treasurylock.asp
Katalin Horváth McClure
United States
Local time: 00:06
Works in field
Native speaker of: Native in HungarianHungarian
PRO pts in category: 36
Grading comment
köszönöm
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