INTERMARKET SPREAD
When two assets prices are averaged together to make the basic price more stable.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
When two assets prices are averaged together to make the basic price more stable.
When index futures are rich buyers keep stocks and sell the futures. When the futures are cheap they sell stock and buy the futures.
A director of the board who is somehow related to the company they oversee. They are not independant voters as they have personal connections. Refer to outside director.
The interest rate for a project assuming it will break even.
A future contract exchanged in reference to a specific index sector, benchmark equity index, or equity basket. This is also called a commodity, currency, or interest rate future.
An offer between dealers that exclude brokers.
A credit risk method introduced in 2004. It allows the bank to use its own method.
An over the counter swap with floating interest. The principal is notational. This type of exhange is also called index amoritizing rate, accreting, amoritizing, reverse index principle, or a variable principle swap
A corporation controlled by a family. Refer to outsider system.
Accounting rules accepted by all countries. Also called generally accepted accounting principles.
An event that suspends coupon interest and principal when losses meet an agreed upon amount. Also called an indemnity or parametric trigger.
Where private information is used to create more profit. Sometimes this is considered a crime and punished. Refer to gun jumping.
A bank started in 1946 to help the post war efforts. Also called a world bank or international finance corporation.
An investment strategy that tries to predict the future perfromance of an asset with minimum error. This is also called an active investment strategy or an index fund.
When a reinsurer is liable to any claims made by the insurer.
An international bank inside a US bank used for offshore business deals.
The trading range of a security whose status is pending.
Allows the buyer a pay as you go contract.
A bank started in 1956 to help third world development through loans.
When an investor shows interest in new securities. It is nonbinding because the securities are not yet registered. Refer to the defenition of circle.