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BP

English translation: basis points

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:BP
English translation:basis points
Entered by: Deb Phillips
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16:11 Jun 11, 2002
German to English translations [PRO]
Bus/Financial
German term or phrase: BP
Die Zinskurve hat sich entlang der gesamten Kurve um ca. 10 BP nach oben verschoben.
Poornima Iyengar
Local time: 15:49
basis points
Explanation:
basis points

--------------------------------------------------
Note added at 2002-06-11 16:19:43 (GMT)
--------------------------------------------------

Interest Rates
In the last month, the yield curve has shifted upward and steepened somewhat, with long rates pushing to 6.95%. Since the beginning of the year, the curve has become noticeably steeper; in fact, two-year rates have increased more than 30-year rates. The 3-year, 3-month spread has increased from six basis points to 117 (the average is 80), and the 10-year, 3-month spread has increased from 43 basis points to 161 (the average is 120). The fears expressed early this year about a sustained inversion have not been confirmed.
Not unexpectedly, the coupon yield curve and the zero-coupon yield curve continue to track one another closely. Zeroes generally have the higher rate, because the coupons give the other bonds a shorter duration—and hence a lower yield, given the upward tilt to the term structure. For shorter maturities, where this is less of a problem, the coupon yields exceed the zero yields, though only by a few basis points. Even at 10 years, however, the spread is no more than 10 basis points.

This year’s increase in the 10-year, 3-month yield spread contrasts with another spread that is often looked to for predictions—the one between corporate Baa bonds and 10-year Treasuries, which has narrowed by nearly 30 basis points since January. Overall, this risk spread shows less volatility than the yield spread, partly because it does not turn negative. Its most pronounced historical feature is a tendency to spike upward in recessions, reflecting the heightened chance of corporate bankruptcy and default on the bonds in times of stress.

a. All instruments are constant-maturity series.
b. Three-month instrument is quoted from the secondary market on a yield basis; 10-year instrument is a constant-maturity series.

NOTE: Shaded areas indicate recessions.

SOURCES: Board of Governors of the Federal Reserve System; and The Wall Street Journal.

October Economic Trends: Interest Rates
Interest Rates. ... Since the beginning of the year, the curve has become noticeably
steeper; in ... The 3-year, 3-month spread has increased from six basis points to ...
http://www.clev.frb.org/research/Et96/1096/intrat.htm [More results from www.clev.frb.org]


FXTrade - Continuous Interest Payment
... an average intraday carry of 2 basis points (it is about 1.5 basis points ... With the
introduction of continuous interest rate payments, the yield curve ...
http://fxtrade.oanda.com/fxtrade/interest_payment.shtml [More results from fxtrade.oanda.com]


Solving Sample Problems (Financial Toolbox)
... a hypothetical amount by which to shift the yield curve (here, 0.2 percentage point
or 20 basis points). ... as a function of the change in the level of interest ...
http://www.mathworks.com/access/helpdesk/help/toolbox/financ... [More results from www.mathworks.com]


Lycos Investing: Analysis Learn
... Analysis: Learning Curve, Archive. 5/8/2002 8:35:35 PM. ... 6.125s of 8/15/29 will be
216 basis points ... of 4.14%, consisting of the 3.875% coupon and imputed interest ...
http://client.lycos.com/analysis/learn/default.asp?ivg=l [More results from client.lycos.com]


BlackRock - Fixed Income Market Commentary
... Treasuries by 42 basis points on a curve-adjusted basis, bringing the excess return
for the first quarter to 152 basis points. The recent back-up in interest ...
http://www.blackrock.com/products/fi_comm.html [More results from www.blackrock.com]


Layer Eight Interest Rate Derivatives
... moments of transaction closure when time and basis points ... foundation of the system
is the yield curve ... deposit futures prices, relevant bond yields and interest ...
http://www.eight.com/

11/17/97 CONNECT THE DOTS...AND YOU\'LL SEE A SLOWDOWN
... securities was 188 basis points. When plotted on a chart, the April yield curve
was seen to be \'\'steep.\'\' Today\'s is \'\'flat,\'\' and the movement of interest ...
http://www.businessweek.com/1997/46/b3553119.htm [More results from www.businessweek.com]


GIC/Stable Value Market Commentary - 3rd Quarter 2000
... In response to this interest rate environment, short-term GIC ... contracts increasing
by 5, 16, and 25 basis points, ... Consequently, the GIC yield curve became more ...
http://www.fcmstablevalue.com/market.htm

The Basics -- The ups and downs of the yield curve - MSN Money
... Seventeen basis points is less than one quarter of a percentage point; not nearly
enough ... What the flat yield curve tells us is that the pros think interest ...
http://moneycentral.msn.com/articles/invest/prepare/1274.asp



Selected response from:

Deb Phillips
Grading comment
Thanks
4 KudoZ points were awarded for this answer

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Summary of answers provided
4 +3basis pointsDeb Phillips


  

Answers


2 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +3
basis points


Explanation:
basis points

--------------------------------------------------
Note added at 2002-06-11 16:19:43 (GMT)
--------------------------------------------------

Interest Rates
In the last month, the yield curve has shifted upward and steepened somewhat, with long rates pushing to 6.95%. Since the beginning of the year, the curve has become noticeably steeper; in fact, two-year rates have increased more than 30-year rates. The 3-year, 3-month spread has increased from six basis points to 117 (the average is 80), and the 10-year, 3-month spread has increased from 43 basis points to 161 (the average is 120). The fears expressed early this year about a sustained inversion have not been confirmed.
Not unexpectedly, the coupon yield curve and the zero-coupon yield curve continue to track one another closely. Zeroes generally have the higher rate, because the coupons give the other bonds a shorter duration—and hence a lower yield, given the upward tilt to the term structure. For shorter maturities, where this is less of a problem, the coupon yields exceed the zero yields, though only by a few basis points. Even at 10 years, however, the spread is no more than 10 basis points.

This year’s increase in the 10-year, 3-month yield spread contrasts with another spread that is often looked to for predictions—the one between corporate Baa bonds and 10-year Treasuries, which has narrowed by nearly 30 basis points since January. Overall, this risk spread shows less volatility than the yield spread, partly because it does not turn negative. Its most pronounced historical feature is a tendency to spike upward in recessions, reflecting the heightened chance of corporate bankruptcy and default on the bonds in times of stress.

a. All instruments are constant-maturity series.
b. Three-month instrument is quoted from the secondary market on a yield basis; 10-year instrument is a constant-maturity series.

NOTE: Shaded areas indicate recessions.

SOURCES: Board of Governors of the Federal Reserve System; and The Wall Street Journal.

October Economic Trends: Interest Rates
Interest Rates. ... Since the beginning of the year, the curve has become noticeably
steeper; in ... The 3-year, 3-month spread has increased from six basis points to ...
http://www.clev.frb.org/research/Et96/1096/intrat.htm [More results from www.clev.frb.org]


FXTrade - Continuous Interest Payment
... an average intraday carry of 2 basis points (it is about 1.5 basis points ... With the
introduction of continuous interest rate payments, the yield curve ...
http://fxtrade.oanda.com/fxtrade/interest_payment.shtml [More results from fxtrade.oanda.com]


Solving Sample Problems (Financial Toolbox)
... a hypothetical amount by which to shift the yield curve (here, 0.2 percentage point
or 20 basis points). ... as a function of the change in the level of interest ...
http://www.mathworks.com/access/helpdesk/help/toolbox/financ... [More results from www.mathworks.com]


Lycos Investing: Analysis Learn
... Analysis: Learning Curve, Archive. 5/8/2002 8:35:35 PM. ... 6.125s of 8/15/29 will be
216 basis points ... of 4.14%, consisting of the 3.875% coupon and imputed interest ...
http://client.lycos.com/analysis/learn/default.asp?ivg=l [More results from client.lycos.com]


BlackRock - Fixed Income Market Commentary
... Treasuries by 42 basis points on a curve-adjusted basis, bringing the excess return
for the first quarter to 152 basis points. The recent back-up in interest ...
http://www.blackrock.com/products/fi_comm.html [More results from www.blackrock.com]


Layer Eight Interest Rate Derivatives
... moments of transaction closure when time and basis points ... foundation of the system
is the yield curve ... deposit futures prices, relevant bond yields and interest ...
http://www.eight.com/

11/17/97 CONNECT THE DOTS...AND YOU\'LL SEE A SLOWDOWN
... securities was 188 basis points. When plotted on a chart, the April yield curve
was seen to be \'\'steep.\'\' Today\'s is \'\'flat,\'\' and the movement of interest ...
http://www.businessweek.com/1997/46/b3553119.htm [More results from www.businessweek.com]


GIC/Stable Value Market Commentary - 3rd Quarter 2000
... In response to this interest rate environment, short-term GIC ... contracts increasing
by 5, 16, and 25 basis points, ... Consequently, the GIC yield curve became more ...
http://www.fcmstablevalue.com/market.htm

The Basics -- The ups and downs of the yield curve - MSN Money
... Seventeen basis points is less than one quarter of a percentage point; not nearly
enough ... What the flat yield curve tells us is that the pros think interest ...
http://moneycentral.msn.com/articles/invest/prepare/1274.asp





Deb Phillips
PRO pts in pair: 77
Grading comment
Thanks

Peer comments on this answer (and responses from the answerer)
agree  Petra Winter
4 mins
  -> Thanks!

agree  Regina Landeck
6 mins
  -> Thanks!

agree  xxxbrute
48 mins
  -> Thanks!
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