SWAP SPREAD
The difference between the swap rate and the benchmark government bond rate. The wider the spread the worse the credit.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
The difference between the swap rate and the benchmark government bond rate. The wider the spread the worse the credit.
Replacing one mode of financing for another.
Expected exposure of a derivative based on the worse performance of an underlying market resource. Refer to average expected, average worst case and terminal expected risk exposures.
A firms ability to cover its debt. The better the ratio the stronger the coverage.
The difference between the eurodollar deposits and treasury bills that mature at the same time. The less the difference the more business improvement.
the sum that the insurer or its representatives are legally required to pay through legal ruling or settlement. This sum can included medical and investigative costs.
A portfolio with different maturity rates. It increases the risk exposure but also increases profit possible. Refer to gap, gapping, matched book, open book, and mismatch.
When companies that make different elements of a product join forces. This is done when one company wants to control much of the process. Refer to conglomerate and horizontal merger.
Treasury bills that are announced but not yet priced. Upon settling they will sell as any treasury bill would. Refer to to be announced and when issued security.
The probability of bankruptcy. It is based on five financial ratios.
A loss that occured already that hasnt yet been paid. Also see ratio.
When currency loses its value due to constantly raising prices.
The cost of borrowing funds or the capital earned on loaned funds.
A broker who helps their client with their strategy. They cannot hold funds to they use the FCM.
The lender’s portfolio must hold these loans or sell them to private investors. Fannie Mae and Freddie Mac limit criteria is exceeded by this type of mortgage.
A person’s citizenship is by ‘blood’, that of the parents. This rule is followed in most countries of the world. Canada and US use Jus Solis (where born) instead.
A parent company and a subsidiary imitate such a contract to guarantee the subsidiary all necessary financing over a specified time-period. The parent company provides this. This contracted support gives potential lenders
Key business statistics as measures of a firm’s performance in critical areas. Typically, monitoring is essential for such business activities that would likely cause severe losses or outright failure if done incorrectly.
Compensatin offered to a bank so a company can use its services. Refer to equity kicker, carrot equity, and sweetner.
1. A very similar looking product copy a patented, trademarked, or copyrighted product or work that is cheaper as an illegal version. 2. A cheaper version of a higher-priced material or product