Latest News:
news, comment, analysis and data on the global business of credit trading and investing
Basis point (bp)
One hundredth of a percentage point. Credit default swaps are usually quoted in basis points, this being the annual premium the protection buyer pays to the protection seller, as a proportion of the notional size of the credit default swap. This means that a $10 million credit default swap priced at 50bp pays a premium of $50,000 a year.
Related stories
- Spain and France auctions fuel credit rally 20 hours ago
- Go long Europe/short US in index or options, says trading desk 21 hours ago
- Credit spotlight - Mixed outlook for insurers 1 day ago
- Fishknife - Making rules for an imaginary world 1 day ago
- Traders play the basis in credit indices 1 day ago
- CDPC fights back in dispute on cash holdings 1 day ago
- Points up front 1 day ago
- Banks offer CLOs as bait to tempt TRS investors 1 day ago
- Basis traders pile into bank sub debt as bonds lag default swaps 2 days ago
