Listed Stocks Those stocks that are listed and traded on an exchange. … [Read more...]
Load-to-Load
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Load-to-Load Formal understanding allowing a customer to pay for previous delivery at the time of receipt of the current one. … [Read more...]
Loan Servicing
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Loan Servicing Administration of the loan from disbursal by lender to full repayment by borrower. Includes sending statements pertaining to monthly payments, collecting such payments, maintaining and updating records of payments and balances, collecting and making tax and … [Read more...]
Loan Syndication
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Loan Syndication See syndicate. A loan sharing arrangement by a group of banks. … [Read more...]
Loan Value
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Loan Value Total amount of money that can be borrowed by policyholder against his whole life insurance policy. The policy papers specify the interest rate payable. … [Read more...]
Local Expectations Theory
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Local Expectations Theory Variant of pure expectations theory. States that bonds having different maturities will yield the same returns when the investment horizon considered is short term. … [Read more...]
Lockbox
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Lockbox Service offered by banks to businesses. Involves collection and processing activities where payments are collected from dedicated postal boxes where customers of the firm are directed to send payment to. The bank may need to make several collections in a day, process the … [Read more...]
Locked-In Interest Rate
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Locked-In Interest Rate A loan where lender and borrower agree on a fixed rate for a given period. The lender agrees to this rate as a legally binding commitment. There may be certain exceptions which, if not met, will let the lender modify the rate upwards. … [Read more...]
Locked Market
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Locked Market Market where the ask price equals bid price. There is no opportunity for arbitrage in such a situation. … [Read more...]
Lock-Out
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Lock-Out Term used with PAC bond CMO classes. The time period prior to date when the sinking fund comes into effect. For multifamily loans, the prepayment prohibited period of the loan. … [Read more...]
Lock-Up CDs
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Lock-Up CDs Certificates of Deposit issued with an understanding that they will not be traded by the buyer. Many times, the issuing bank insists that the CD is placed in safekeeping with itself to ensure that the buyer does not sell it. … [Read more...]
Log-Linear Least-Squares Method
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Log-Linear Least-Squares Method Statistical analysis technique to create a graphical representation of data in the form of a curve. The logarithm of one of the given variables is taken and a straight line is drawn to represent the remaining data. … [Read more...]
Lognormal Distribution
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Lognormal Distribution Used to depict expected returns over one year or greater periods. In this distribution the variable logarithm tracks a normal distribution. … [Read more...]
Lombard Rate
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Lombard Rate Rate charged by German central bank from other banks for loan obligations that are collateralized. … [Read more...]
Long
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Long Opposite of short. Investor who has purchased a contract to enter a position that is still open. The investor has not yet ‘closed’ the position by a sale to offset the long position. … [Read more...]
Long Bonds
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Long Bonds Those bonds that have a long current maturity, say, 30-years. For example, the U.S. government bond of 30 year maturity. … [Read more...]
Long Coupons
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Long Coupons - Bonds wherein there is a longer coupon period on the first coupon when compared with others or with the standard period. - Notes or bonds with long current maturity. … [Read more...]
Long Dated Forward
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Long Dated Forward Forward contract generally used with forex transactions that involve positions with settlement dates falling more than a year in future. Used to hedge currency exposures by companies. … [Read more...]
Long Hedge
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Long Hedge Related to Hedge, short hedge. Purchase of future contracts owing to expectation of actual purchases at a future date in the cash market. Used as protection or insulation against price rises at the time of actual purchase. … [Read more...]
Long Position
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Long Position A position in an options contract where the holder has engaged in trades with various options with the end result that he has bought more than he has sold. That is, he is an owner of options at the end of all the trades. Also used to signify a transaction that gives … [Read more...]
