Lenders Option Borrowers Option - Revision history

imported>Doug Williamson: Link with Interest page.

2018-10-07T22:07:48Z

Link with Interest page.

← Older revision		Revision as of 22:07, 7 October 2018
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	== See also ==		== See also ==
			* [[Interest]]
	* [[Option]]		* [[Option]]

			[[Category:Long_term_funding]]

imported>Doug Williamson: Layout.

2015-12-04T14:31:03Z

Layout.

← Older revision		Revision as of 14:31, 4 December 2015
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	(LOBO).		(LOBO).


	A long term borrowing instrument with periodic interest re-fixings, which incorporates two linked options:		A long term borrowing instrument with periodic interest re-fixings, which incorporates two linked options:

imported>Doug Williamson: More space added

2015-04-08T08:11:10Z

More space added

← Older revision		Revision as of 08:11, 8 April 2015
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	Each of the two embedded options can be complex to value with precision, potentially making the composite borrowing instrument difficult for some less sophisticated borrowers to evaluate.		Each of the two embedded options can be complex to value with precision, potentially making the composite borrowing instrument difficult for some less sophisticated borrowers to evaluate.


	Also written 'Lender's Option Borrower's Option'.		Also written 'Lender's Option Borrower's Option'.

imported>Doug Williamson: Spacing 22/8/13

2013-08-22T11:38:46Z

Spacing 22/8/13

← Older revision		Revision as of 11:38, 22 August 2013
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	(LOBO).		(LOBO).

	A long term borrowing instrument with periodic interest re-fixings, which incorporates two linked options:		A long term borrowing instrument with periodic interest re-fixings, which incorporates two linked options:

	#An option for the lender to set revised (usually higher) interest rates at predetermined interest reset dates - for example annually. This is the Lender's option.		#An option for the lender to set revised (usually higher) interest rates at predetermined interest reset dates - for example annually. This is the Lender's option.
	#A linked option for the borrower (exercisable only if the Lender’s option is exercised) either to pay the revised interest rate, or else to redeem the bond. This is the Borrower’s option.		#A linked option for the borrower (exercisable only if the Lender’s option is exercised) either to pay the revised interest rate, or else to redeem the bond. This is the Borrower’s option.


	LOBOs have been issued for maturities of up to 50 years.		LOBOs have been issued for maturities of up to 50 years.
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	Also written 'Lender's Option Borrower's Option'.		Also written 'Lender's Option Borrower's Option'.


	== See also ==		== See also ==
	* [[Option]]		* [[Option]]

imported>Charles Cresswell at 22:04, 10 July 2013

2013-07-10T22:04:46Z

← Older revision		Revision as of 22:04, 10 July 2013
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	(LOBO).		(LOBO).
	A long term borrowing instrument with periodic interest re-fixings, which incorporates two linked options:		A long term borrowing instrument with periodic interest re-fixings, which incorporates two linked options:
	~~(1) An option for the lender to set revised (usually higher) interest rates at predetermined interest reset dates - for example annually.~~
	~~This is the Lender's option.~~

	(2) A linked option for the borrower (exercisable only if the Lender’s option is exercised) either to pay the revised interest rate, or else to redeem the bond.		#An option for the lender to set revised (usually higher) interest rates at predetermined interest reset dates - for example annually. This is the Lender's option.
	This is the Borrower’s option.		#A linked option for the borrower (exercisable only if the Lender’s option is exercised) either to pay the revised interest rate, or else to redeem the bond. This is the Borrower’s option.

	LOBOs have been issued for maturities of up to 50 years.		LOBOs have been issued for maturities of up to 50 years.
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	== See also ==		== See also ==
	* [[Option]]		* [[Option]]

imported>Administrator: CSV import

2012-10-23T14:19:59Z

CSV import

New page

(LOBO).
A long term borrowing instrument with periodic interest re-fixings, which incorporates two linked options:
(1) An option for the lender to set revised (usually higher) interest rates at predetermined interest reset dates - for example annually.
This is the Lender's option.

(2) A linked option for the borrower (exercisable only if the Lender’s option is exercised) either to pay the revised interest rate, or else to redeem the bond.
This is the Borrower’s option.

LOBOs have been issued for maturities of up to 50 years.

Each of the two embedded options can be complex to value with precision, potentially making the composite borrowing instrument difficult for some less sophisticated borrowers to evaluate.

Also written 'Lender's Option Borrower's Option'.

== See also ==
* [[Option]]