Parallel Loan

Parallel Loan
Technique used to curtail foreign exchange fluctuation risks wherein two businesses based in different countries lend their domestic currency to each other. A time is decided for repayment at which the loans are paid back. Also called back-to-back loans.

Random Finance Terms for the Letter P

  • Paper Gain (Loss)
  • Par Value
  • Parallel Loan
  • Parallel Shift in the Yield Curve
  • Parameter
  • Parity Value
  • Partial Redemption
  • Participating GIC
  • Participating Fees
  • Partnership