VERTICAL LAYERING
When reinsurers assume different layers of risk. Some reinsurers will have no loss. The higher the layer the less exposed to risk. Refer to excess layer and horizontal layering.
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When reinsurers assume different layers of risk. Some reinsurers will have no loss. The higher the layer the less exposed to risk. Refer to excess layer and horizontal layering.
A security announced but not priced. It is informal but legally binding. When settled it trades like any seasoned security. Refer to to be announced and when issued treasury.
A strategy used to increase core returns. This is intended to be a low risk move. Refer to arbitrage speculation and hedging.
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
Earnings system that compensates employees skill level proficiency and gained education. The employee incentive is improve skills set and education. Reaching certain goals in education, training and skill development translates into higher
The time it takes an insurance claim to process.
Offer termination, regardless of the reason, other than completion of the deal. An offer lapses due to (1) expiration date reached; (2) a reasonable period has gone by, having no specified expiration
Commodity or security price on last transaction executed and posted on an exchange.
A pricing model that uses an assets ending value and calculates backwards to manage the fund.
That conflicts be resolved based on the facts of the situation. Human relations school of management concept. Rejects references to relative superiority of any party over the other. Oddly promotes the resolutions
Coordinating bank or underwriting firm for an underwriting syndicate as the organizer and a member. Launch and sale of the issue of securities underwritten by the syndicate are primary roles of this