a scenario in which a good investment organisation, such as for instance an investment trust, build up sterling with an UK bank which consequently arranges with a foreign connect lender to provide the equivalent level of foreign exchange into financial investment organization. The purpose of this deal is hedge against currency changes influencing the profile.
When a bank gives a loan centered on financing currently provided internationally. It's done to avoid exchange constraints. A parent and subsidiary company is used. The mother or father is ultimately liable for default. Reference parallel loan.
Two party arrangement in which a bank advances a loan on such basis as that loan higher level by another lender in another country, typically to prevent forex limitations. Such arrangements typically involve parent and subsidiary businesses in which mother or father continues to be accountable for payment whenever the subsidiary defaults. See also parallel loan.