PARTIAL PLAN TERMINATION
Using overfunded pension plans to start new endeavors.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
Using overfunded pension plans to start new endeavors.
When deductable increases the same percent as loss incurred. This preserves and increases risk retention.
An option that allows investors to redeem their bonds if a trigger event occurs. The sudden redemption reduces cash value and makes the stock less attractive to the buyer.
The amount of risk associated with a financial investment with uncertain value. AKA risk equivalent exposure.
A new bond floated to pay an existing bond issue. This occurs at the first call date. Proceeds are invested in low risk securites until the original bond is redeemable. This is
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.
The way insurance companies get their premiums. These rates are made to cover loss and still be fair. Refer to expense loading, premium loading, and pure premium.
When a bank refuses funds for an insurance company due to previous losses. It is illegal in many jurisdictions.
Using a retrocession contract to defer responsibility from the retrocedant to a retrocessionaire. Refer to cede, recessionaire, and retrocedant.
When an inthemoney option is turned into a latent option because the barrier is below the strike price. AKA kickout option. Refer to reverse knockin option.
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.