overnight float options

Retail banking profitability
Neue Antwort am 1. März 2022
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Ryan fragte am 24. Feb. 2022

what are “overnight float options”?

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Ian
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antwortete am 25. Feb. 2022
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi there,

First of all, this is a pretty technical and investment banking term that you won't be required to know in your case interviews.

Second, if you ever don't know anything in a case, make sure to ask the right questions in an assertive way to figure it out!

Finally, I believe they're referring to an overnight index swap. Basically, options/swaps are when 2 parties agree to a contract stating 1 party has the *option* to buy an asset from another party at a future date. You can also *borrow* an asset and agree to return it at a future date and price.

These are tricky topics that you won't need to know, but, if you're curious to learn more, investopedia is a great resource!

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Lucie
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Content Creator
antwortete am 24. Feb. 2022
10+yrs recruiting & BCG Project leader

Hi there, 

context would help, but looks like an overnight indexed swap (OIS), but not certain.

Lucie

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Clara
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Content Creator
antwortete am 1. März 2022
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

This case is highly technical, and not representative of what you will find in Consulting interviews overall

Cheers, 

Clara

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Ian

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