PRIMACY
The main insurer on a policy. Refer to apportionment, divided cover, overlapping insurance, and pro rata.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
The main insurer on a policy. Refer to apportionment, divided cover, overlapping insurance, and pro rata.
A subsidiary company that writes special risk insurance for their parent company or group.
Relationships used to decide option prices that must remain to prevent arbitrage conditions. The sum price of the call option and strike price. This price must equal the sum of the put
Assets in a bank exposed to interest rate changes. Refer to asset liability management and ratesensitive liabilities.
Reactivating insurance cancelled due to nonpayment. The insurance company has the right to charge a higher premium.
An insurance policy that covers existing and incurred but not yet reported losses up to a dollar amount. Refer to loss portfolio transfer and retrospective finite policy.
When a lender gives monthly payments to a borrower using their property equity. This is usually done by elderly homeowners resulting in the borrower eventually owning the home.
A decision guided by cost/benefit analysis made by a firm to control, retain, eliminate, or expand its risks. Refer to risk identification, risk monitoring, and risk quantification.
Presentations organized by a firm introducing a new issue of securities to possible investors. AKA dog and pony show.
The attempt of a takeover target to make itself look undesirable by threatening to liquidate or destroy assets in the event of a hostile takeover. Refer to crown jewel defense, dead hand
Liquidating a loan or derivative when a payment is not recieved. This causes contract or loan cancellation.
When the futures rate is lower than the forward rate. This means the cash market is underpriced and the asset is bought while selling the futures. Refer to long arbitrage.
Assets or securities that are offered in a large quantity or a change in an assets position.
A strategy whereby several financial factors combine to expose or protect the price of a commodity. Refer to bull spread, bear spread, effective spread, quoted spread, and realized spread.
A contract where additional shares of a target will not be purchased by a raider or acquiring firm until a mutual agreement can be accomplished.
Taking a par yield curve and turning it into a zero coupon yield curve so the firm doesn
Short term back up credit given to a borrower as needed. They are used when commercial paper issuers when investors won’t roll over maturing paper. AKA backup line.
UK government bills sold to their own entities. No gilt edge market makers are used.
A market that is illiquid. It has low volume, high spreads, and high volatility. Refer to tight market.
An offer to deposit into the Tokyo market. It is used as a reference.