PUKE POINT
When a dealer or trader sell all or some of a money losing position.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
When a dealer or trader sell all or some of a money losing position.
When a company buys an option on its own stock. This is done through a middle man generating gain even if stock value declines. Refer to loss equity put.
This guarantees a borrower an interest rate on a loan for 30 to 90 days. This makes all financing costs known for the period of time. AKA lockin provision. Refer to drop
Discounting an instrument a second time. Each time a discount is given the credit risk goes up.
The first party involved in the contractual transfer of responsibility to another party.
When an inthemoney option is created out of a latent option by pushing the barrier above the strike price. AKA kickin option. Refer to reverse knockout option.
Economic capital set aside to cover risk related exposure and losses. It can be handled internally or with regulations. Refer to regulatory capital and risk adjusted return on capital.
The calibration of a firms financial andor operating risk and its economic capital to determine its ability to withstand unexpected losses. Refer to regulator capital and risk adjusted return on capital.
A broker that overcharges for trades against established rules or an advisor who makes a profit by beating their clients to an investment.
Using syndications, participations and subunderwritings to reduce a new loans or bonds risk exposure.
A nonyen bond issued by a foreign company in Japan. Refer also to Daimyo, Geisha, Samurai, and Shibosai.
When a sinking fund provision is included in a bonds indenture.
Illegally enticing business from favored clients using allocations to establish a quid pro quo arrangement.
A bank is protected if a customer defaults on a transaction by a standby letter of credit giving the bank the authority to pay the beneficiary and go after the customer to
When a plaintiff makes a motion to prove harm has occurred without having to show how or why to collect damages.
A receiver payer swap where the buyer can enter a swap at a predetermined rate in the future.
When a company offers to buy another to improve profits, clients access, and assets. It can be friendly or hostile. Refer to bid.
A transaction that increases risk and produces loss.
A mortgage that trades as a when issued security. Its presence is announced but the price is not decided yet.
When a companies captives can access reinsurance markets. A small percentage of exposure is insured through reinsurance.