RISK FINANCING
A delay in the funding of losses until they are more affordable instead of transferring them to a third party. Refer to finite insurance contract and finite reinsurance.
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A delay in the funding of losses until they are more affordable instead of transferring them to a third party. Refer to finite insurance contract and finite reinsurance.
A calculation where expected losses and expenses are subtracted from revenue, income from capital is added, and this amount is divided by capital to determine risks on projects being considered for investment.
Theorizing outcome from risk exposures such as foreign exchange rates, yield curve shifts, or market volatility. AKA stress testing.
When syndicate members get a discount on new issues. This is half the underwriting spread.
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.
It means outside ones jurisdiction. It is any financial action that is not covered legally under a companies laws. A third party can sue if this is mismanaged.
An auditor who is not part of the company who verifies the honesty of the financial records given.
When a directors duties are given to creditors before insolvency occurs. This protects assets in the failing business.
When security price falls causing a stop loss order. The price will rebound. Or a raise in price that trigger purchases lowering stock price.
an early mortality table which showed the actual mortality experienced by those insured by major insurers between 1925 and 1934.
An insurer that underwrites property and casualty policies.