Overshooting Reflection of an increased prepayment rate as soon as an MBS crosses the refinance threshold. Most commonly occurs when the WAC of underlying debt security pool has not crossed refinancing limitations for two or three years following the date of issue. Random … [Read more...]
P&L
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P&L Stands for profit and loss statement. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]
P2P
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P2P In finance, denotes path to profitability. Strategy or approach followed by new business to transform into a profit making concern. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]
P/E
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P/E Refer: Price/Earnings ratio. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]
P/E Ratio
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P/E Ratio Stands for price per share divided by annual earnings for each share. Measures fair stock valuation in market. A share selling at $10 and earning $2 over a year has a value equal to 5 times as much as it earns. Random Finance Terms for the Letter … [Read more...]
P/E Effect
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P/E Effect Effect where portfolio with stocks showing low P/E ratios display higher returns (after adjusting for risk) than those having high P/E ratio. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]
PSA
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PSA Used to manage risk inherent in prepayment. Assumes increase in prepayments with a cap at 30 months. Helps assess speed of prepayment in new loans. 0.2% is the standard increase amount denoting a 2% increase in rate every month until the 30th month. Random Finance Terms … [Read more...]
Pairoff
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Pairoff Repurchase or buy back to set off or cancel, in effect, a previous sale of securities. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]
Paper
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Paper Instruments available in the money market such as commercial paper. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]
Paper Gain (Loss)
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Paper Gain (Loss) Difference between market price and cost of acquisition of securities in portfolio that translates into unrealized capital gains. Random Finance Terms for the Letter P Paper Gain (Loss) Par Value Parallel Loan Parallel Shift in the Yield … [Read more...]
Par Value
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Par Value Amount that issuer will pay back when maturity date arrives. Also termed face value or maturity value. Random Finance Terms for the Letter P Paper Gain (Loss) Par Value Parallel Loan Parallel Shift in the Yield Curve Parameter Parity Value Partial … [Read more...]
Parallel Loan
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Parallel Loan Technique used to curtail foreign exchange fluctuation risks wherein two businesses based in different countries lend their domestic currency to each other. A time is decided for repayment at which the loans are paid back. Also called back-to-back loans. Random … [Read more...]
Parallel Shift in the Yield Curve
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Parallel Shift in the Yield Curve A change in the yield curve that is duplicated across different maturities. The change is evaluated in basis points and compared with that of securities having different maturities. E.g.: a 50 basis point increase in 1 year T Bill being matched by … [Read more...]
Parameter
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Parameter Also refer: exogenous variable. Coefficient, whose value is determined from the underlying data in a model. Such parameters are used characterize an element of the model. Random Finance Terms for the Letter P Paper Gain (Loss) Par Value Parallel Loan Parallel … [Read more...]
Parity Value
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Parity Value Value when a convertible security is converted with immediate effect. Also called convertible value or conversion value Random Finance Terms for the Letter P Paper Gain (Loss) Par Value Parallel Loan Parallel Shift in the Yield Curve Parameter Parity … [Read more...]
Partial Redemption
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Partial Redemption Withdrawal of part of value by owner of a security as required by him so that the balance is still locked in an investment yielding returns. Random Finance Terms for the Letter P Paper Gain (Loss) Par Value Parallel Loan Parallel Shift in the Yield … [Read more...]
Participating GIC
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Participating GIC Policyholder is not given guaranteed returns in this Guaranteed Investment Contract. Returns receivable depend on the performance of portfolio of assets held by issuing insurer. Random Finance Terms for the Letter P Paper Gain (Loss) Par Value Parallel … [Read more...]
Participating Fees
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Participating Fees Share received by participating banks in the total fees collected by syndicated credit. Random Finance Terms for the Letter P Paper Gain (Loss) Par Value Parallel Loan Parallel Shift in the Yield Curve Parameter Parity Value Partial … [Read more...]
Partnership
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Partnership An allocation or distribution of ownership between two people or more, where they may or may not have restricted liability. Also see: Limited partnership, general partnership, master limited partnership. Random Finance Terms for the Letter P Paper Gain (Loss) Par … [Read more...]
Pass-Through Rate
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Pass-Through Rate Rate of interest that is actually payable to investors after the advertised mortgage coupon rate is adjusted with fees for management, servicing and guarantee. Random Finance Terms for the Letter P Passive Portfolio Strategy Pass-Through Rate Pass-Through … [Read more...]
