Debt Signaling Theory that announcements pertaining to debt held by a firm can be used as to indicate future stock performance. Company announcements about debt are taken as positive news. … [Read more...]
Debtor in Possession
Filed Under: d by
Debtor in Possession A business continuing operations under the bankruptcy processes of Chapter 11. … [Read more...]
Debtor-in-Possession Financing
Filed Under: d by
Debtor-in-Possession Financing Any fresh debt undertaken by a business undergoing bankruptcy processes under Chapter 11. … [Read more...]
Decile Rank
Filed Under: d by
Decile Rank Mutual fund performance evaluation over given time periods using a rating on a 1- 10 scale. A rating of 1 shows that the fund was in the top 10% with respect to returns generated. A comparison of all funds falling having similar investment strategy is done through … [Read more...]
Decision Tree
Filed Under: d by
Decision Tree Risk analysis technique showing possible alternative decisions and the outcomes of such alternative actions. … [Read more...]
Declaration Date
Filed Under: d by
Declaration Date Date when directors of a firm conduct a meeting to decide the dividend amount and to announce dividend disbursal date. … [Read more...]
Dedicated Capital
Filed Under: d by
Dedicated Capital Also termed dedicated value. Total par value as calculated by multiplying number of shares issued with each share’s par value. … [Read more...]
Dedicated Short Bias
Filed Under: d by
Dedicated Short Bias Strategy used with hedge funds wherein the fund manager favors short positions rather than long positions. … [Read more...]
Dedication Strategy
Filed Under: d by
Dedication Strategy Matching cash flows over several periods as part of portfolio management strategy. … [Read more...]
Dedicating a Portfolio
Filed Under: d by
Dedicating a Portfolio Refer: cash flow matching. Matching portfolio returns to future capital outlays. … [Read more...]
Deductive Reasoning
Filed Under: d by
Deductive Reasoning Using general facts to glean accurate and pertinent information about a given specific circumstance. … [Read more...]
Deep-Discount Bond
Filed Under: d by
Deep-Discount Bond Bonds that carry low or no coupon and sell well below their par value. A zero coupon bond is one which has no coupon. … [Read more...]
Default
Filed Under: d by
Default Any disruption or failure in making principal and interest payment on time on a debt security. Else, refers to any other failure to comply with bond indenture provisions and stipulations. … [Read more...]
Default Premium
Filed Under: d by
Default Premium Differential or variance in projected yield that makes up for inherent risks in corporate bonds where some default risk exists. … [Read more...]
Default Probability
Filed Under: d by
Default Probability Probability that borrower cannot make necessary scheduled repayments on debt. Such a borrower is said to be in default of the debt. … [Read more...]
Default Risk
Filed Under: d by
Default Risk Alternatively termed credit risk. Such risk is evaluated by commercial credit rating entities. Represents the risk that the bond issuer may fail to repay principal and fulfill interest payments on time. … [Read more...]
Defeasance
Filed Under: d by
Defeasance The system of setting aside bonds or cash by borrower to fulfill his debt. From the balance sheet, both debt and offset are removed. … [Read more...]
Deferred Annuities
Filed Under: d by
Deferred Annuities A life insurance offering that gives a tax benefit. For example, a deferred annuity that affords tax deferral along with a life annuity option by means of fund withdrawal. … [Read more...]
Deferred Call
Filed Under: d by
Deferred Call A prohibition on a firm that restricts calling bonds prior to a stipulated time. A call protection is in force on the bond until this time. … [Read more...]
Deferred Equity
Filed Under: d by
Deferred Equity Commonly used term referring to convertible bonds. Known as such because of the equity component and a future expectation of conversion into common stock shares. … [Read more...]
