For example, if a trader takes 10% of his book for a ten-year swap, then 5% of his previous year's bonus is used for the same position.

ECONOMIST: Letters

Pre-defined bonus and salaries depending on draft position.

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If you're in a position where you receive an annual raise or bonus above the rate of inflation, Jenkins suggests you just hold your Committed Expenses steady for a while and let the raises or bonuses reduce the percentage over time.

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