Соглашение о форвардной ставке (FRA)

Что такое Соглашение о форвардной ставке (FRA)?

Forward rate agreements (FRA) are over-the-counter contracts between parties that determine the rate of interest to be paid on an agreed upon date in the future. In other words, an FRA is an agreement to exchange an interest rate commitment on a notional amount.

The FRA determines the rates to be used along with the termination date and notional value. FRAs are cash-settled. The payment is based on the net difference between the interest rate of the contract and the floating rate in the market—the reference rate. The notional amount is not exchanged. It is a cash amount based on the rate differentials and the notional value of the contract.

Key Takeaways

  • Forward rate agreements (FRA) are over-the-counter contracts between parties that determine the rate of interest to be paid on an agreed upon date in the future.
  • The notional amount is not exchanged, but rather a cash amount based on the rate differentials and the notional value of the contract.
  • A borrower might want to fix their borrowing costs today by entering into an FRA.

Formula and Calculation for a Forward Rate Agreement (FRA)

FRAP=((R−FRA)