latames
Credit investing glossary

Definition of basis points

Basis points are a unit of measure that is used, amongst others, to reflect percentage changes in financial instruments. Typically, it is used to represent changes in interest rates, yields and spreads.

Converting percentage changes to basis points

One basis point is defined as one-hundredth of a percentage point, which is 0.01%, and which equals 0.0001.

For example, if a bond yield declines from 7% to 6.75%, the yield has declined by 25 basis points.

If a commercial bank increases its mortgage rate from 4.5% to 5.5%, the rate has risen by 100 basis points.

Consistently at the forefront of credit management
Consistently at the forefront of credit management
Credit investing
Perspectivas 2021: Resolver el trilema
Perspectivas 2021: Resolver el trilema
En 2021, el principal reto para las autoridades será encontrar el justo equilibrio entre tres cosas: la salud pública, el funcionamiento normal de la economía y la libertad personal.
19-11-2020 | Perspectiva anual
El vínculo entre ASG y rentabilidad: el crédito ODS pasa la prueba
El vínculo entre ASG y rentabilidad: el crédito ODS pasa la prueba
El análisis de atribución confirma que invertir de manera favorable a los ODS incide positivamente sobre los resultados financieros.
13-11-2020 | Visión
European banks face an earnings event, not a capital event
European banks face an earnings event, not a capital event
Although the extent of the economic contraction has been sizeable, and default rates are expected to rise further, our view is that banks will survive the pain.
28-10-2020 | Visión