DNB Group: Basis swap impact in fourth quarter 2018
In the fourth quarter of 2018, the DNB Group will record a negative effect of basis swaps connected to funding of NOK 342 million. Basis swaps are derivative contracts entered into in connection with long-term funding in international capital markets where the relevant currency is converted to Norwegian kroner. These swaps are hedging instruments, and over the lifetime of the derivatives the mark-to-market adjustments will have zero effect.