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TRYYUSD Cross currency 1yr forward starting - Few questions!

can someone please explain to me the settlement cycle of TRYYUSD Cross currency 1yr forward starting OTC.

The interest payments are settled in cash, and not netted out, since each payment will be in a different currency, on every interest payment date for the life of the trade.

If you roll to the next IMM date or close out before then their is no settlement - only the mark to market?

Is the exchange of full notional at maturity (physical settlement) or just a cash settlement of the net mark-to market?

Thanks!

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zebraqueries wrote:

can someone please explain to me the settlement cycle of TRYYUSD Cross currency 1yr forward starting OTC.

The interest payments are settled in cash, and not netted out, since each payment will be in a different currency, on every interest payment date for the life of the trade.

If you roll to the next IMM date or close out before then their is no settlement - only the mark to market?

Is the exchange of full notional at maturity (physical settlement) or just a cash settlement of the net mark-to market?

Thanks!

I’m in no way an expert in this but I see some of this stuff at work and I’ve only seen cash settlements that are netted out. Physical settlements are pretty rare IMO.  

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