glossary · what it means in a filing
Basis point
also called bp · bps
A basis point is one hundredth of a percentage point. On a loan carried near par, one basis point of price is one cent of fair value per hundred dollars of principal.
What it looks like in a filing
Filings quote fair value in dollars and in percent of par. Expressing a difference in basis points makes two loans of different size comparable, which a dollar difference does not.
What Kanonstone measures with it
A 83.7 basis point median gap means the typical loan in the panel is carried roughly 0.84 cents on the dollar apart by its two most distant holders.