Commodity Return Leg
From Open Risk Manual
Definition
Commodity Return Leg. Return on the value of an underlying commodity.
The cash flows from a commodity may be negative as you have a cost from holding the commodity but there are no interim cash flows, so it equates to a negative interest rate. So a commodity swap is like a TRS in that it is based the return on the increase in value.
Disclaimer
This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.
Facts about "Commodity Return Leg"
| IsDefinedBy URI of an entity that is defined via an imported vocabulary. | https://spec.edmcouncil.org/fibo/ontology/DER/CommoditiesDerivatives/CommoditySwaps/index-en.html + |
