HomeDefinitionsCompareDebt Covered interest arbitrageThe financial definition for Covered interest arbitrage:Occurs when a portfolio manager invests dollars in an instrument denominated in a foreign currency and hedges the resulting foreign exchange risk by selling the proceeds of the investment forward for dollars. Similar MatchesArbitrage bondsArbitrage bondsMunicipality issued bonds issued intended to gain an interest rate advantage by refunding a higher-rate bond in ahead of their call date. Lower-rate refunding issue proceeds are invested in Treasuries until the first call date of the higher-rate issue. Arbitrage free option pricing modelsArbitrage free option pricing modelsYield curve option-pricing models. Arbitrage Trading Program (ATP)Arbitrage Trading Program (ATP)See: Program trading. Further SuggestionsArbitrageurConvertible Arbitrage Currency arbitrage Discount Arbitrage Index arbitrage International arbitrage Locational arbitrage Click to compare definitions of Covered interest arbitrage Click to view definitions beginning co |