Merrill Lynch said: "The $2.5bn is for an asset that [Anglo] originally paid $5.5bn for, adding the notional interest and capital expenditure.
We don't, of course, know the details of what its president, Mario Draghi, will announce but it will presumably include a notional interest rate cut and a commitment to extend the quantitative easing (QE) programme indefinitely.
They also asked why this might be.Working alone at the beginning and end of the experiment, and in committees the rest of the time, the students attempted to manage a notional economy via interest rates.
So the notional value of interest-rate contracts, the most common OTC derivative, represents the "principal" rather than the "coupon".In this section Overview Output, prices and jobs The Economist commodity-price index Producer prices Trade, exchange rates, budget balances and interest rates Markets Global OTC derivatives Reprints.
Yet the notional value of outstanding interest-rate swaps is $685 billion, or 37% of GDP.
If they use short-term swaps to hedge longer-term bonds (which are more sensitive to interest rates), the notional size of the derivatives position can legitimately exceed that of the underlying position by many times.
Given his participation in All Star Mr and Mrs, Celebrity Come Dine With Me, Ant and Dec's Saturday Night Takeaway and Bargain Hunt Famous Finds (as well as his stated interest in my notional sitcom Anyone But Lembit), Opik may not be able to make quite the same boast.
But that counts all guaranteed debt the equivalent, in home insurance, of the value of houses covered rather than premiums paid.For interest-rate contracts, notional values are even more misleading because they are based on principal amounts; actual obligations depend on interest payments.
Whole sections cut and pasted - entire paragraphs on Scotland's projected net fiscal debt, on the country's debt interest payments and on notional borrowing costs.
For example, the interest rate earned by the notional accounts is set by the growth of average wages, not that of the total pay bill, which means that it is unaffected by fertility-induced falls in employment.
One university in the South that held interest rate swaps with a notional value of $1.7 billion was forced to post $314 million in collateral in December, according to Moody's.
