PRIVATE PLACEMENT
A debt not registered with the securities regulator. It is sold on a ceveat emptor basis to only experienced investors. It is illiquid and only transfers to a short list of buyers.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
A debt not registered with the securities regulator. It is sold on a ceveat emptor basis to only experienced investors. It is illiquid and only transfers to a short list of buyers.
A swap transaction that allows an insurer to diversify their portfolio by exchanging uncorrelated catastrophic hazards. Refer to catastrophe reinsurance swap.
A company’s ability to use its near cash and quick assets to absorb liabilities.
Whan an option writer sells both naked and covered options. They are sold in specific amounts and ratios. This is safer than a pure naked option position.
A licensed insurer who makes accounts available to companies who prefer self insurance. Refer to agency captive, captive, group captive, protected cell company, pure captive, senior captive, and sister captive.
The legal review focusing on the board of directors actions just prior to the financial difficulties that is performed by external parties as a result of a declaration of bankruptcy.
When a holder sells high coupon securities back with the understanding that at maturity, they will be able to repurchase these securities.
The tracking and reporting of exposures to risk to external stakeholders. Refer to risk identification, risk management, and risk quantification.
The closing of an option to obtain a higher strike price. Refer to roll down and roll forward.
The resale by a bank or securities firm of securities on behalf of an investor where the seller is responsible for commission fees but keeps the proceeds from the sale.
When all transactions are cancelled due to default. Both debtor and investor agree to this. Refer to novation and payment netting.
When a short position is used to protect the long position. Refer to long hedge.
When stop orders cause upward or downward market movement setting off additional stop orders, continuing until several cycles occur. Refer to gather in the stops.
Risk due to changes between two assets with a common link. This is a category of market risk.
The offset of foreign exchange market effects by increasing or decreasing the national money supply by a monetary authority such as a central bank. It is a manipulation of the value of
A contract with the closest maturity date on eurodollars or a loan or bond with a short maturity.
A loan created on an unfounded basis using credit derivatives. Refer to cash collateralized debt obligation.
A low interest rate or a high deposit rate used to entice investors. After several quarters the normal rates apply.
When directors evaluate their poison pill defences every three years.
The report generated for a security at its maturation date. It shows the details of the transaction and the issuer.