High Return Investments

Forward rate agreement

A Forward Rate Agreement (FRA) is a contract where an agreed interest rate
Rk applies to an agreed principal P for an agreed period of time, say
between Ts and Te. Normally the pay-off is computed without waiting the
interest period, by computing the future value of the FRA at Te, and using
the actual rate R at Ts to discount the future value as follows:

Payment = P . (1 + Rk)(Te-Ts)/( R. (Te-Ts) ) - P

The times Ts and Te must be computed using an agreed interest rate basis.

Investment FreshNews:

British finance minister paints bleak picture of economy (AFP via Yahoo! News)
Sat, 19 Jul 2008 00:25:20 GMT
Britain's economic downturn is worse than previously thought and there is no extra money available for public spending, finance minister Alistair Darling said in an interview published Saturday.

IAC Raises $2 Billion in Debt to Finance Spinoff Plan (Update2) (Bloomberg.com)
Fri, 18 Jul 2008 21:50:44 GMT
July 18 (Bloomberg) -- IAC/InterActiveCorp , the Internet company controlled by Barry Diller , signed agreements to raise almost $2 billion to finance the spinoffs of three divisions, part of a plan to break up the company.

$2.45b sale to finance major mine expansion (Toowoomba Chronicle)
Fri, 18 Jul 2008 23:36:25 GMT
THE sale of a Central Queensland coal project will help finance a massive expansion of the New Acland coal mine near Oakey.

Fitch Confirms Indiana Finance Authority Lease Bonds, Series 2003C&D at 'AA' (Centre Daily Times)
Fri, 18 Jul 2008 22:55:21 GMT
Fitch Ratings has confirmed its underlying 'AA' rating to the Indiana Finance Authority's (authority) conversion of $71,250,000 facilities revenue refunding bonds, series 2003C and 2003D to term-rate period from auction-rate securities. The bonds are expected to be offered via negotiation on July 24. Fitch also affirms at 'AA' approximately $3 billion of Indiana's appropriation debt. The Rating ...

Leading Structured Finance Lawyers, William "Butch" Cullen and Janet Barbiere Join Kaye Scholer LLP (Centre Daily Times)
Fri, 18 Jul 2008 20:13:33 GMT
Kaye Scholer LLP announced that William J. "Butch" Cullen and Janet A. Barbiere have joined the firm's Corporate & Finance Department, as Partners in its New York office, effective today.

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