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This question was closed without grading. Reason: Other
Apr 21, 2022 19:26
2 yrs ago
24 viewers *
Spanish term

flujo de fijo a variable

Spanish to English Bus/Financial Finance (general)
Hi!

I'd appreciate your help with this, as I'm not fully grasping it.

This refers to the Net Interest Income of a bank, this is one of the reasons for its performance in a specific period.

"Ahorro en los costes minoristas principalmente como consecuencia del impacto favorable de coberturas de tipos de interés por importe limitado que transforman el flujo de fijo a variable."

I know the following is correct (I've included in parentheses what I' not sure about and omitted what's part of this question):
"Savings in retail funding costs, mainly due to the positive impact of interest-rate hedges (established for a limited amount).......

Thanks :)
Proposed translations (English)
4 (swapping from a) fixed to a variable rate
3 cash flow from fixed to floating stream
4 -2 (which go from a ) fixed to variable amount (of interest rates)

Discussion

slothm Apr 22, 2022:
"transforman el flujo de fijo a variable." Original phrase.
As I suggested, cash flows.
How can interest rates flow?
Robert Mavros (asker) Apr 22, 2022:
Thank you for your help. Much appreciated!!!!
Luis M. Sosa Apr 21, 2022:
@Robert Banks normally and regularly hedge their exposure to interest rate volatility by entering into floating to fixed interest rate swaps (or vice versa, which depends on the interest rate outlook . ‘Por importe limitado’ refers to the fact that the bank did not hedge the total value of the exposure to floating interest rates, but only a portion of it. No hedge is perfect.

My suggetion:

Savings in retail funding costs, mainly due to the positive impact of interest-rate hedges (established for a limited amount) that convert/turn fixed into floating cash flows.
Ana Vozone Apr 21, 2022:
Could it be the flow of fixed income securities (bonds) is changing to variable income securities (shares), ie, for instance, the fund is changing its securities from bonds to shares?

Proposed translations

-2
4 mins

(which go from a ) fixed to variable amount (of interest rates)

Asi lo leo Robert;
Note from asker:
Thanks :)
Peer comment(s):
disagree slothm : Interest rates do not flow, cash does.
9 hrs
Whoever said they did? Not me. Your own erroneous misinterpretation. No wonder you agreed with Adrian He used "stream" which interest rates definitely don't.Keep on backing Adrian, you obviously have no qualms about looking an @rseh@le , like your mucker;
disagree Adrian MM. : Stanley Unwinese in brackets + the usual tautology, this time of variable 'amount' of interest 'rates'. Rather amateurish by accountancy & Use of 'English' standards. //I admired Austrian-born Lady Bramall & husband Sir Ashley QC as a GB translation team.
14 hrs
And you'd know, as a native Austrian German speaker, and a self-proclaimed UK English llegal expert and accountant, wouldn't you Adrian?
Something went wrong...
6 hrs

(swapping from a) fixed to a variable rate

Based on my understanding of "interest rate hedges" they can also be known as "interest rate swaps", and refer to swapping a variable interest rate for a fixed rate. I'm unsure if you can swap from a fixed to a variable rate though, I'd need to do some research. Anyway, this is what first came to mind when I saw your query.
Note from asker:
Thanks :)
Peer comment(s):
disagree slothm : Interest rates do not flow, cash does.
2 hrs
agree Andrew Bramhall : Ignore the idiotic comment above.Adrian M(ad) M(an)'s mucker, also a non-native English speaker seems to want to revel in the infamy of being an @rseh@le much like Adrian does.
5 hrs
Something went wrong...
2 hrs

cash flow from fixed to floating stream

My reading is that the flow is the underlying cash(-)flow.

Otherwise, cut to non-facile answers.

--------------------------------------------------
Note added at 14 hrs (2022-04-22 10:16:25 GMT)
--------------------------------------------------

First link again: https://viewpoint.pwc.com/dt/us/en/pwc/accounting_guides/der...
Example sentence:

c is a rate that equates the value of the fixed *cash flow* stream to the value of the floating cash flow stream.

Reference:

http://viewpoint.pwc.com/dt/us/en/pwc/accounting_guides/derivatives_and_hedg/derivatives_and_hedg_US/chapter_9_effectiven_US/97_changeinvari

http://www.investopedia.com/articles/active-trading/111414/how-value-interest-rate-swaps.asp

Note from asker:
Thanks :)
Peer comment(s):
disagree Andrew Bramhall : Nope. How can anything "fixed" 'stream'? Contradiction.//first link doesn't work, second irrelevant anyway//"lazy" ??/ look to your friend sloth, who you'd expect to be hanging upside down off the branch of an Amazonian tree 24/7.More use there than here!
19 mins
At least, I take the time and trouble of adding references, even if you don't understand the accounting & derivatives idiom involved. Cut to your lazy, facile & ambiguous answers shooting from the hip after just 4 minutes. // It's fixed rate to floater.
agree slothm : cash flow from fixed to floating.
6 hrs
Gracias, sloth. Andrew B. - even as a purported Englishman - tends to get 'overexcited'.
Something went wrong...
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