Examples of 'basis risk' in a sentence
Meaning of "basis risk"
Basis risk: Basis risk refers to the risk that the value of an asset or liability will change at a different rate than a related index or benchmark. In financial terms, it can also refer to the risk of loss due to a discrepancy between the hedge and the underlying asset being hedged
How to use "basis risk" in a sentence
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basis risk
Basis risk arising from contractual terms.
Excess of loss with basis risk.
Identify the basis risk arising from contractual terms.
The risk of this occurring is called basis risk.
Basis risk remains a concern for the buyer of the commodity.
The differential or basis risk.
No basis risk.
The only price risk faced is a small basis risk.
No basis risk differences across regions were found for the feeder cattle.
The weaker this relation the higher the basis risk.
Incorporation of basis risk between financial institutions and therefore of contagion between them.
And they expertly manage the basis risk of that trade.
Plan administrators should evaluate and monitor the effectiveness of hedging strategies against basis risk.
Definition of basis risk.
Basis risk arising from risk-transfer structure.
See also
The amount by which the two quantities differ measures the value of the basis risk.
Sufficient basis risk retained by cedant;.
In other words, these operations involve a high basis risk.
Basis risk is a major disadvantage of index-based insurance.
It is, however, noted that basis risk sometimes becomes the real driver for dispute.
Basis risk arising from risk - transfer structure.
Concomitant use of these preparations is only permitted on a short-term basis risk of kidney impairment.
Of active management, basis risk and other factors, realized sensitivities may differ significantly.
It captures name-related basis risk.
Keep in mind, however, that basis risk is less than price and basis risk combined.
It is noted that DG ENV calculated its ‘ error rate ' on a non-standard basis risk based.
Could the basis risk ' bogeyman ' threaten the rise of parametric insurance?
Cross-currency basis risk.
Introduce basis risk because the one-to-one relationship between the.
What if your weather basis risk was unknowable, as in Game of Thrones?
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