Overnight delivery risk
A risk brought about because differences in time zones between settlement centers require that payment or delivery on one side of a transaction be made without knowing until the next day whether the funds have been received in an account on the other side. Particularly apparent when delivery takes place in Europe for payment in dollars in New York.
Nearby TermsOverlapping debt Overlay strategy Overnight delivery risk Overnight position Overnight repo
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University