Glossary entry (derived from question below)
Italian term or phrase:
componente derivativa implicita
English translation:
embedded derivative component
Added to glossary by
EirTranslations
Jun 10, 2015 13:38
9 yrs ago
Italian term
componente derivativa implicita
Italian to English
Bus/Financial
Finance (general)
I've seen derivative component but not too sure in this case many thanks
L’accentramento dell’operatività presso la Banca permette di offrire buoni livelli di liquidità e di efficienza.
I prezzi sono elaborati sulla base di regole formalizzate dalla Banca ed utilizzano dati di mercato disponibili al momento (curve dei tassi ecc.) ai quali va aggiunto uno spread.
Per le obbligazioni strutturate viene inoltre valutata la componente derivativa implicita.
L’accentramento dell’operatività presso la Banca permette di offrire buoni livelli di liquidità e di efficienza.
I prezzi sono elaborati sulla base di regole formalizzate dalla Banca ed utilizzano dati di mercato disponibili al momento (curve dei tassi ecc.) ai quali va aggiunto uno spread.
Per le obbligazioni strutturate viene inoltre valutata la componente derivativa implicita.
Proposed translations
(English)
3 +4 | embedded derivative component |
Edgar Bettridge
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Proposed translations
+4
18 mins
Selected
embedded derivative component
You could write "implicit derivative component", but "embedded" is more common, and is the language used in the IAS.
"An embedded derivative can modify the cash flows of the host contract because the derivative can be related to an exchange rate, commodity price or some other variable which frequently changes. For example, a Canadian company might enter into a sales contract with a Chinese company, creating a host contract. If the contract is denominated in a foreign currency, such as the U.S. dollar, an embedded foreign currency derivative is created."
"An embedded derivative can modify the cash flows of the host contract because the derivative can be related to an exchange rate, commodity price or some other variable which frequently changes. For example, a Canadian company might enter into a sales contract with a Chinese company, creating a host contract. If the contract is denominated in a foreign currency, such as the U.S. dollar, an embedded foreign currency derivative is created."
4 KudoZ points awarded for this answer.
Comment: "thx"
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