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Explain the Sovereign Risk
Sovereign risk denotes a country imposing exchange restrictions on a currency included in a swap making it expensive, or not possible, for a counterparty to honor its swap obligations to the dealer. In this type of event, provisions exist for the early termination of a swap that means a loss of revenue to the swap bank.
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Can some one tell me the defination of Historical weights and how we calculate the historical weight?? And given the diffrence between Historical weight Vs Marginal weights??
FIXED ASSETS 200 000 LONG TERM LIABILITIES CURRENT ASSETS CASH 40 000 LOAN
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