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servo shell
Apr 17, 2018 14:52
6 yrs ago
English term

tenure-matching

English to French Bus/Financial Management Prêts intersociétés
"The interest rates applied to intercompany loan transactions consist of two components, namely a market rate as a basis plus an interest margin. The base is a variable tenure-matching Interbank Offered Rate (e.g. Euribor or Libor)"
Proposed translations (French)
4 -1 qui aligne les actifs sur les passifs
4 -1 correspondance entre les périodes de maturité

Discussion

Daryo May 2, 2018:
"I'll never allow Daryo to twist the meaning of words" - really? no kidding?

You need to seriously reconsider your methods - starting with basics, like:

"the first meaning found might not be the only one"

Ah, yes - there is also this pesky annoying thingy called "context" ....
Francois Boye Apr 28, 2018:
I'll never allow Daryo to twist the meaning of words. See my objections below!
Daryo Apr 21, 2018:
small fly in the ointment ... this is an intercompany loan which implies that it's a loan between companies that are under the same control (part of the same group of companies) [= like shifting money from the left pocket to the right pocket],

IOW these ARE NOT loans between mutually independent entities [like a "normal" loan a bank would give to a company to acquire some assets] so this kind of "tenure matching":

the tenure of the solution [loan for 10 years] needs to match the tenure of the problem [buying assets that will used 10 years]

simply do not apply to this ST

démonstration par l'absurde: where are "the assets" to be matched to the loan?


THE ONLY "tenures" that exist in this ST are:

-- the tenure of the "intercompany loan" IOW for how long the money is borrowed

-- the tenure of the LIBOR or EURIBOR rate to be applied on the loan

so in this text the "tenure matching" is between these 2 time intervals IOW if the intercompany loan is for 3 months, the LIBOR rate for 3 month loans will be applied, if the loan is for 6 months, the LIBOR [or EURIBOR, or whatever reference rate is used] rate for 6 moth loans will be applied.
Francois Boye Apr 20, 2018:
In finance, tenure means how long an asset or debt has been held.
Zeineb Nalouti Apr 20, 2018:
Tenure matching : the tenure of the solution needs to match the tenure of the problem
Francois Boye Apr 19, 2018:
Daryo cannot disregard the definition of TENURE-MATCHING when he is arguing, period..
Daryo Apr 18, 2018:
read ALL OF the ST instead of resorting to all sort of logical acrobatics trying to fit the first explanation that happened to be available into the ST, and just repeating quotes that are irrelevant for this specific text.

A hint about methodology: if an explanation doesn't fit / doesn't make sense it's to be discarded and another one that does make sense has to be found. Understanding the subject matter usually also helps.

Ignoring "annoying little facts", like that in this ST there is no mention whatsoever of any "assets" doesn't make it right to forcibly try to fit the first explanation found.

"tenure-matching" is nothing more than that - matching two lengths of time - just because the first example you found is about the "tenure" of assets and the "tenure" of the sources of financing these assets DOESN'T MEAN that there are not any other "tenure matching" possible.
Francois Boye Apr 18, 2018:
@ Daryo

The concept of tenure matching is about matching assets and debts.

In this sentence, It means that lending companies will choose loans and interest rates (Libor) consistent with the profile of the debts they have to repay.

See this excerpt of my attachment:

'One of the fundamental concepts of finance is to match the tenure of assets and liabilities. That the tenure of source of funds (equity, debt, etc.) need to match the tenure of what they are used for. So, if you need money to tide over till your next payday, you need to take an extremely short-term loan. If you need to borrrow to fund a house – an application that has a long tenure – you need to take a longer-term loan'

Proposed translations

-1
1 hr

qui aligne les actifs sur les passifs

http://noenthuda.com/blog/2008/12/20/tenure-matching/

--------------------------------------------------
Note added at 4 hrs (2018-04-17 18:57:09 GMT)
--------------------------------------------------

To be more precise:

'qui aligne la durée de vie des actifs aux échéances des passifs'

--------------------------------------------------
Note added at 11 hrs (2018-04-18 02:43:53 GMT)
--------------------------------------------------

Erratum: 'qui aligne la durée de vie des actifs sur les échéances des passifs' instead of 'qui aligne la durée de vie des actifs aux échéances des passifs'
Peer comment(s):
disagree Daryo : here it's about a different kind of "tenure matching" // Fits in this context like a round peg in a square hole: WHERE do you see in this ST any mention of the "tenure" of any assets??? Makes sense to you?
12 hrs
Which one? Please display your pieces of evidence, Professor Daryo!
Something went wrong...
-1
1 day 3 hrs
English term (edited): tenure-matching [of interest rates]

correspondance entre les périodes de maturité


tenure-matching

"The interest rates applied to intercompany loan transactions consist of two components, namely a market rate as a basis plus an interest margin. The base is a variable tenure-matching Interbank Offered Rate (e.g. Euribor or LIBOR)"


The base [rate] is a variable tenure-matching Interbank Offered Rate (e.g. EURIBOR or LIBOR)
=
Le taux d'intérêt de base est le Taux interbancaire offert applicable aux prêts de même maturité / de même durée (p. ex. le EURIBOR ou le LIBOR)


HERE the "matching" is between the "tenure" of the intercompany loan and the "tenure" of the LIBOR rate to be applied to this loan;


LIBOR [same as EURIBOR] is not one single interest rate, but a set of interest rates that depend on the "tenure" [= the duration of the loan, also known as "maturity"]

IOW the "tenure-matching" in this ST means that if the intercompany loan is for a period of say 10 months [="tenure" of 10 months], then the "base rate" applied to the loan will be the LIBOR rate for a loan with a maturity / tenure of 10 months.

N.B. Here it's completely irrelevant what the intercompany loan is used for.



LIBOR - current LIBOR interest rates
LIBOR is the average interbank interest rate at which a selection of banks on the London money market are prepared to lend to one another. LIBOR comes in 7 maturities (from overnight to 12 months) and in 5 different currencies. The official LIBOR interest rates are announced once per working day at around 11:45 a.m. In the past, the BBA/ICE published LIBOR rates for 5 more currencies (Swedish krona, Danish krone, Canadian dollar, Australian dollar and New Zealand dollar) and 8 more maturities (2 weeks, 4, 5, 7, 8, 9, 10 and 11 months).

LIBOR is watched closely by both professionals and private individuals because the LIBOR interest rate is used as a base rate (benchmark) by banks and other financial institutions. Rises and falls in the LIBOR interest rates can therefore have consequences for the interest rates on all sorts of banking products such as savings accounts, mortgages and loans.

EUR 04-17-2018 04-16-2018 04-13-2018 04-12-2018 04-11-2018


Euro LIBOR - overnight -0.44186 % -0.44186 % -0.44186 % -0.43829 % -0.43900 %
Euro LIBOR - 1 week -0.42200 % -0.42200 % -0.42200 % -0.42200 % -0.42200 %
Euro LIBOR - 2 weeks - - - - -
Euro LIBOR - 1 month -0.40157 % -0.40157 % -0.40157 % -0.40014 % -0.40086 %
Euro LIBOR - 2 months -0.38271 % -0.38314 % -0.38314 % -0.38457 % -0.38457 %
Euro LIBOR - 3 months -0.36500 % -0.36500 % -0.36500 % -0.36571 % -0.36571 %
Euro LIBOR - 4 months - - - - -
Euro LIBOR - 5 months - - - - -
Euro LIBOR - 6 months -0.32371 % -0.32371 % -0.32371 % -0.32371 % -0.32371 %
Euro LIBOR - 7 months - - - - -
Euro LIBOR - 8 months - - - - -
Euro LIBOR - 9 months - - - - -
Euro LIBOR - 10 months - - - - -
Euro LIBOR - 11 months - - - - -
Euro LIBOR - 12 months -0.24629 % -0.24629 % -0.24629 % -0.24486 % -0.24486 %


http://www.global-rates.com/interest-rates/libor/libor.aspx



--------------------------------------------------
Note added at 15 days (2018-05-02 20:09:37 GMT)
--------------------------------------------------

should be blindingly obvious, but it seems not to be so for everyone:

ST: "The base is a variable tenure-matching Interbank Offered Rate (e.g. Euribor or Libor)"

=>

here "tenure-matching" is used as adjective qualifying the "Interbank Offered Rate (e.g. Euribor or Libor)" IOW the "tenure" to be matched in this ST is the "tenure" of the "Interbank Offered Rate"

Basic logic would dictate that you "match" what's comparable, of the same kind, so a "match" to the "tenure" of one (interest) rate would be the "tenure" of some other (interest) rate ...

--------------------------------------------------
Note added at 15 days (2018-05-03 10:52:55 GMT)
--------------------------------------------------

or to be more accurate:

the "tenure" associated with/interdependent with one interest rate (of the intercompany loan) should be matched to the "tenure" of the LIBOR (or EURIBOR) interest rate chosen to be used as base rate.
Peer comment(s):
disagree Francois Boye : See my response in the discussion section. My objection is that an interest rate is neither an asset nor a debt. But the concept of tenure matching is about matching assets and debts. See my attachment.
41 mins
yeah sure ... just use the first meaning that you happened to find, and who cares about such things as the context, or basic logic - they are just just some irrelevant annoyances ... to be treated like dirty words. Not my method.
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