And the best proxy for India's sovereign risk the credit-default-swap premium on debt issued by State Bank of India, a state-backed lender has fallen to less scary levels (see chart).But whether India has really got its house in order, and been saved from a return to junk status, is less clear.
This is part of a wider relationship with WSJ and News Corp., too, which includes swapped-over premium subscriptions where users of Evernote Premium get one year of free WSJ; and WSJ subscribers get a free year of Evernote Premium.
Feeling more nervous about their interest-rate and credit exposures, people demand higher swap-spread premiums.
Sancor Seguros, an Argentine insurance company, intends to swap grains for premiums, and an Argentine insurer owned by HSBC is considering a similar plan.
When you swap from a premium-priced bond into a new bond with a lower coupon, you effectively convert high-taxed coupon income into an untaxed capital gain.
To bear this counterparty risk, he charges me a premium: the swap spread.
Here's how it would work: Say that AOL buys CBS in a stock swap at a small premium to yesterday's closing price of $43.75, paying the equivalent of $50 in stock.
Thirty minutes later, a helpful store associate swapped most of this premium pine for something a little more suited to the guts of a loft bed.
Those buying credit default swaps in WaMu pay a premium of 51% of the amount insured, plus a spread of 500, according to Phoenix Partners.
A limited edition ZombiU pack comes with all of the Premium Pack contents but swaps Nintendo Land for, yes, ZombiU and adds a Pro controller.
After a few years they try to push the premium way up so I swap provider.
