tenure-matching

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14:52 Apr 17, 2018
English to French translations [PRO]
Bus/Financial - Management / Prêts intersociétés
English term or phrase: tenure-matching
"The interest rates applied to intercompany loan transactions consist of two components, namely a market rate as a basis plus an interest margin. The base is a variable tenure-matching Interbank Offered Rate (e.g. Euribor or Libor)"
Laurie Rudloff
France
Local time: 09:40


Summary of answers provided
4 -1correspondance entre les périodes de maturité
Daryo
4 -1qui aligne les actifs sur les passifs
Francois Boye


Discussion entries: 8





  

Answers


1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): -1
qui aligne les actifs sur les passifs


Explanation:
http://noenthuda.com/blog/2008/12/20/tenure-matching/

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Note added at 4 hrs (2018-04-17 18:57:09 GMT)
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To be more precise:

'qui aligne la durée de vie des actifs aux échéances des passifs'

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Note added at 11 hrs (2018-04-18 02:43:53 GMT)
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Erratum: 'qui aligne la durée de vie des actifs sur les échéances des passifs' instead of 'qui aligne la durée de vie des actifs aux échéances des passifs'


Francois Boye
United States
Local time: 03:40
Native speaker of: Native in FrenchFrench
PRO pts in category: 48

Peer comments on this answer (and responses from the answerer)
disagree  Daryo: here it's about a different kind of "tenure matching" // Fits in this context like a round peg in a square hole: WHERE do you see in this ST any mention of the "tenure" of any assets??? Makes sense to you?
12 hrs
  -> Which one? Please display your pieces of evidence, Professor Daryo!
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1 day 3 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): -1
tenure-matching [of interest rates]
correspondance entre les périodes de maturité


Explanation:

tenure-matching

"The interest rates applied to intercompany loan transactions consist of two components, namely a market rate as a basis plus an interest margin. The base is a variable tenure-matching Interbank Offered Rate (e.g. Euribor or LIBOR)"



The base [rate] is a variable tenure-matching Interbank Offered Rate (e.g. EURIBOR or LIBOR)
=
Le taux d'intérêt de base est le Taux interbancaire offert applicable aux prêts de même maturité / de même durée (p. ex. le EURIBOR ou le LIBOR)


HERE the "matching" is between the "tenure" of the intercompany loan and the "tenure" of the LIBOR rate to be applied to this loan;


LIBOR [same as EURIBOR] is not one single interest rate, but a set of interest rates that depend on the "tenure" [= the duration of the loan, also known as "maturity"]

IOW the "tenure-matching" in this ST means that if the intercompany loan is for a period of say 10 months [="tenure" of 10 months], then the "base rate" applied to the loan will be the LIBOR rate for a loan with a maturity / tenure of 10 months.

N.B. Here it's completely irrelevant what the intercompany loan is used for.



LIBOR - current LIBOR interest rates
LIBOR is the average interbank interest rate at which a selection of banks on the London money market are prepared to lend to one another. LIBOR comes in 7 maturities (from overnight to 12 months) and in 5 different currencies. The official LIBOR interest rates are announced once per working day at around 11:45 a.m. In the past, the BBA/ICE published LIBOR rates for 5 more currencies (Swedish krona, Danish krone, Canadian dollar, Australian dollar and New Zealand dollar) and 8 more maturities (2 weeks, 4, 5, 7, 8, 9, 10 and 11 months).

LIBOR is watched closely by both professionals and private individuals because the LIBOR interest rate is used as a base rate (benchmark) by banks and other financial institutions. Rises and falls in the LIBOR interest rates can therefore have consequences for the interest rates on all sorts of banking products such as savings accounts, mortgages and loans.

EUR 04-17-2018 04-16-2018 04-13-2018 04-12-2018 04-11-2018


Euro LIBOR - overnight -0.44186 % -0.44186 % -0.44186 % -0.43829 % -0.43900 %
Euro LIBOR - 1 week -0.42200 % -0.42200 % -0.42200 % -0.42200 % -0.42200 %
Euro LIBOR - 2 weeks - - - - -
Euro LIBOR - 1 month -0.40157 % -0.40157 % -0.40157 % -0.40014 % -0.40086 %
Euro LIBOR - 2 months -0.38271 % -0.38314 % -0.38314 % -0.38457 % -0.38457 %
Euro LIBOR - 3 months -0.36500 % -0.36500 % -0.36500 % -0.36571 % -0.36571 %
Euro LIBOR - 4 months - - - - -
Euro LIBOR - 5 months - - - - -
Euro LIBOR - 6 months -0.32371 % -0.32371 % -0.32371 % -0.32371 % -0.32371 %
Euro LIBOR - 7 months - - - - -
Euro LIBOR - 8 months - - - - -
Euro LIBOR - 9 months - - - - -
Euro LIBOR - 10 months - - - - -
Euro LIBOR - 11 months - - - - -
Euro LIBOR - 12 months -0.24629 % -0.24629 % -0.24629 % -0.24486 % -0.24486 %


http://www.global-rates.com/interest-rates/libor/libor.aspx



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Note added at 15 days (2018-05-02 20:09:37 GMT)
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should be blindingly obvious, but it seems not to be so for everyone:

ST: "The base is a variable tenure-matching Interbank Offered Rate (e.g. Euribor or Libor)"

=>

here "tenure-matching" is used as adjective qualifying the "Interbank Offered Rate (e.g. Euribor or Libor)" IOW the "tenure" to be matched in this ST is the "tenure" of the "Interbank Offered Rate"

Basic logic would dictate that you "match" what's comparable, of the same kind, so a "match" to the "tenure" of one (interest) rate would be the "tenure" of some other (interest) rate ...

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Note added at 15 days (2018-05-03 10:52:55 GMT)
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or to be more accurate:

the "tenure" associated with/interdependent with one interest rate (of the intercompany loan) should be matched to the "tenure" of the LIBOR (or EURIBOR) interest rate chosen to be used as base rate.


Daryo
United Kingdom
Local time: 08:40
Native speaker of: Native in SerbianSerbian, Native in FrenchFrench
PRO pts in category: 36

Peer comments on this answer (and responses from the answerer)
disagree  Francois Boye: See my response in the discussion section. My objection is that an interest rate is neither an asset nor a debt. But the concept of tenure matching is about matching assets and debts. See my attachment.
41 mins
  -> yeah sure ... just use the first meaning that you happened to find, and who cares about such things as the context, or basic logic - they are just just some irrelevant annoyances ... to be treated like dirty words. Not my method.
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