Investment dictionary

HARAKIRI SWAP

Hara-Kiri Swap: translation

An interest rate or cross-currency swap devoid of any profit margin for the originator. The term gets its name from Japanese banks' and securities houses' 1980s strategy of offerings very low rates in order to obtain business. In Japan, hara-kiri is a form of slow ritual suicide; the swaps were dubbed hara-kiri because they turned out to be a form of financial suicide for the institutions that offered them.

Although hara-kiri swaps provide no intrinsic benefits to the parties that offer them, there are a variety of extrinsic benefits to consider. For example, the practice often involves USD/JPY cross-currency swaps, which have typically been attached to new issues with the aim of obtaining a leading underwriting position.

  1. harakiri swap—фин. harakiri swap...Англо-русский экономический словарь
  2. harakiri swap—фин. свопхаракириu валютный своп который не приносит прибылиem harakiri swapforeign exchange swap валютный своп на условиях не соответствующих состоянию рыночной конъюнк...Англо-русский экономический словарь
  3. harakiri swap—Своп не предусматривающий никакой прибыли называется словом которое в японском языке обозначает ритуальное самоубийство....Финансы - оксфордский толковый словарь