CORPORATE AND INSTITUTIONAL FAQS

LIBOR stands for London Inter-Bank Offered Rate and is the rate on dollar-denominated deposits, also known as Eurodollars, traded between banks in London.   The index is most commonly quoted for one-month, three-month, six-month and one-year periods.

A Eurodollar is a dollar deposited in a bank in a country outside the U.S.   The Eurodollar market has been around for over 40 years and is a major component of the international financial markets.   London is the center of the Euro market in terms of traded volume.   Because LIBOR represents the rate at which banks can borrow and lend US dollars globally, it is widely used as a borrowing index on U.S. commercial and corporate loans.

Contact one of our payment specialists by calling Risk Management Operations at (800) 249-3865, 8:30am to 5:30pm ET, Monday through Friday, or send an email to derivativescustomerservice@wachovia.com 

This is the amount of dollars (or other currency) on which interest rate swap payments are computed. Unlike the principal amount of a loan, the notional amount of a swap is not something anyone pays. Although a swap may be used to hedge the anticipated interest expense of loan, a swap's notional amount is independent of the loan and does not change when the loan is repaid or its principal amount otherwise changes.

Companies often need information on the value of their swap or other derivatives transactions to complete their financial statements.   For a calculation of the value of a Wachovia transaction, please send a fax to (704) 715-1982, call  (800) 249-3865 and choose option 6, 8:30am to 5:30pm ET, Monday through Friday or send an email to derivativescustomerservice@wachovia.com

You will need to include the following information:

• Wachovia transaction number
• Date as of which you would like the calculation
• Name, telephone number, and fax number of the person to whom we should send the information