Performance Index Paper – PIP

Performance Index Paper – PIP is a short-term document on which interest rates are denominated and paid in basics currency. Performance Index Paper’s interest rates are determined by the exchange amount of the bottom currency with an alternate currency.

Performance Index Paper – PIP

It is a commercial-paper difference of the currency coupon exchange. PIPs are organized products that can be designed to meet the specific requirements of a company, although the minimum limits are generally quite high. Performance Index Paper is one way to hedge currency threat. For example, a large U.S. exporter concerned about a drop in the value of the European compared to the USD can ask its standard bank to structure a PIP that pushes the downside chance of the European.