A contractual guarantee applied in both loans and fixed yield investments that limit the movement of interest rates to within a specified range for a certain time period. Investors are protected from a steep drop in interest rates, and borrowers are protected from an increase in rates. In either case, a premium is usually paid for the guarantee.
Related information about interest rate guarantee:
- Interest rate guarantee - Wikipedia, the free encyclopedia
An interest rate guarantee (IRG) is an option on a forward rate agreement (FRA) that is handled over-the-counter (OTC). A call IRG is called a borrower's IRG.
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Definition of interest rate guarantee: A contractual guarantee applied in both loans and fixed yield investments that limit the movement of interest rates to within a ...
- Commercial Loan Interest Rate Guarantee Disclosure
CommercialBanc commercial loan and apartment loan interest rate guarantee disclosures.
- Interest Rate Guarantee (IRG)
An option on a forward rate agreement (FRA) or an interest rate futures settlement rate. A lender's IRG is a call on the forward or futures rate and a borrower's ...
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