tenor (currency)

In the context of currency and finance, "tenor" refers to the duration or length of time until a financial contract, such as a loan or a derivative, matures or expires. It indicates how long the terms of the agreement will remain in effect. For example, a loan with a tenor of five years means the borrower has five years to repay it. Tenor can vary widely, from short-term contracts lasting days or months to long-term ones spanning several years. Understanding tenor is essential for assessing risk and managing financial commitments effectively.