- Industry: Financial services
- Number of terms: 73910
- Number of blossaries: 1
- Company Profile:
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The risk that an issuer of a bond may be unable to make timely principal and interest payments. Also referred to as credit risk (as gauged by commercial rating companies).
Industry:Financial services
Goods that have a relatively lengthy life (television sets, radios, etc.).
Industry:Financial services
The setting aside by a borrower of cash or bonds sufficient to service the borrower's debt. Both the borrower's debt and the offsetting cash or bonds are removed from the balance sheet. In securities trading, where a clearing house becomes counterparty to each side of a trade, after the trade has been agreed. This is necessary to facilitate netting, and reduce counterparty risk exposure. The term has become popular recently, because of the the growth of central counterparty clearing services in European cash equities markets.
Industry:Financial services
Low-risk stocks or bonds that will provide a predictable and safe return on an investor's money.
Industry:Financial services
A common gauge of the price sensitivity of a fixed income asset or portfolio to a change in interest rates.
Industry:Financial services
A type of account that delays taxes on that account until some later date.
Industry:Financial services
An immunization technique that matches asset duration with the duration of the liabilities.
Industry:Financial services
Tax-advantaged life insurance products. Deferred annuities offer deferral of taxes with the option of withdrawing one's funds in the form of life annuity.
Industry:Financial services
Auction in which the lowest price necessary to sell the entire offering becomes the price at which all securities offered are sold. This technique has been used in Treasury auctions. Often used in risk arbitrage. Auction system in which the price of an item (stock) is gradually lowered until it meets a responsive bid (government T-bills) or offer (corporate repurchase) and is sold. In a corporate repurchase, a range of prices is set by the company within which shareholders are invited to tender their shares. The tender offer is open for a specific period of time (i.e., 20 days), and the quantity of stock to be purchased is stated as well, subject to proration if more shares are tendered than can be legally purchased under the stated terms (often an additional amount equal to 20% of outstanding shares can be purchased). The price paid is that at which the amount stated to be purchased can be sold. Compare to double auction system.
Industry:Financial services
