Buy Acquiring an asset and creating a long position on it. … [Read more...]
EAD- Exposure at Default
Filed Under: e by
EAD- Exposure at Default The total exposure a bank faces at default. Every underlying exposure is assigned an EAD value within a bank's internal system. Using the IRB method, banks determine their EAD systems using their own default models for risk management. … [Read more...]
Subperiod Return
Filed Under: s by
Subperiod Return An investment/portfolio return over a time period that is shorter than evaluation period set by the money manager. Random Finance Terms for the Letter S Structured Portfolio Strategy Structured Settlement Subject Subject to Opinion Subjective … [Read more...]
APY- Annual Percentage Yield
Filed Under: a by
APY- Annual Percentage Yield Effective annual return rate, when compounding effect is accounted for. Calculated as one plus the periodic return rate and raising it to total number of periods over the year. … [Read more...]
Negative Pledge Clause
Filed Under: n by
Negative Pledge Clause Stipulation or covenant in a bond requiring borrower or issuer to give lenders a claim or lien that equals what is offered to current unsecured lenders in future. … [Read more...]
Derivative Markets
Filed Under: d by
Derivative Markets Marketplace where derivative instruments are traded. … [Read more...]
Term Insurance
Filed Under: t by
Term Insurance No cash value is built through investments and offers only death benefit. Random Finance Terms for the Letter T Term Bonds Tenor Term Fed Funds Term Life Insurance Term Loan Term Insurance Term Repo Term Structure of Interest Rates Term to … [Read more...]
Performance Shares
Filed Under: p by
Performance Shares Proportion of stock disbursed to managers as a reward for performance. Performance is measured in terms of earnings per share and other parameters. Helps motivate management to actively work towards the goal of shareholders in improving business. … [Read more...]
Settlement Rate
Filed Under: s by
Settlement Rate A FASB 87 suggested rate to discount a pension plan’s obligations. Pension benefits can be settled off at this rate in the case of termination of pension obligation. Random Finance Terms for the Letter S Settlement Rate Settlement Risk Seykota … [Read more...]
Leading Economic Indicators
Filed Under: l by
Leading Economic Indicators Data pertaining to or signifying economic factors, that rise or fall before the rest of the economy follows suit. … [Read more...]
Delivery Options
Filed Under: d by
Delivery Options Options such as timing option, quality option and wild card option that the seller of a future contract with interest rates can use. There is uncertainty in the exact kind of T bond delivered or exact date owing to delivery options. … [Read more...]
Liability Driven Investment – LDI
Filed Under: l by
Liability Driven Investment - LDI Investing strategy where primary goal is to invest in sufficient assets to meet all current and future liabilities. Commonly found with defined-benefit pension plans. … [Read more...]
Yield Spread Strategies
Filed Under: y by
Yield Spread Strategies Tactics using which a portfolio is positioned to take advantage of anticipated changes in spread of yields between different bond market sectors. Random Finance Terms for the Letter Y Yankee Bonds Yankee CD Yankee Market Yard Yield Yield … [Read more...]
Passive Portfolio Strategy
Filed Under: p by
Passive Portfolio Strategy Investment strategy aiming at diversifying the portfolio in line with an index to ensure good returns. Here securities are simply chosen to match the index rather than on any study of their future prospects. For e.g.: a portfolio consisting of all S&P 500 … [Read more...]
Yield to Maturity
Filed Under: y by
Yield to Maturity Rate of return (in percentage) paid on a note, fixed income security or bond if it is bought and held till its maturity date. It is based on the assumption that the coupon interest paid over the bond’s life shall be reinvested at a similar rate. YTM is calculated … [Read more...]
Loan Amortization Schedule
Filed Under: l by
Loan Amortization Schedule The due dates specified under a schedule for a loan for making interest and principal repayments. … [Read more...]
ABO – Accumulated Benefit Obligation
Filed Under: a by
ABO - Accumulated Benefit Obligation Refer: projected benefit obligation. Approximation of plan liability in event it is terminated on calculation date. … [Read more...]
ACRS- Accelerated Cost Recovery System
Filed Under: a by
ACRS- Accelerated Cost Recovery System Schedule of rates of depreciation used for tax purposes. … [Read more...]
ACSI- American Customer Satisfaction Index
Filed Under: a by
ACSI- American Customer Satisfaction Index Index indicating satisfaction of U.S. consumers with the quality of products and services available in the country. The ACSI has four levels of scores - national customer satisfaction, economic sector (10 scores), industry (43 scores), and … [Read more...]
ACU- Asian Currency Unit
Filed Under: a by
ACU- Asian Currency Unit Deposits denominated in dollars held in Asian centers like Singapore. … [Read more...]
