Category: P

The amount an insurer underwrites based on its premiums collected on active policies.

When an insurer must take their share of the losses based on a fixed or variable percentage or monetary value. Refer to excess of loss agreement.

An option where the buyer can sell underlying call option back to the seller. Refer to call on a call, call on a put, and put on a put.

The value of a security at the time of issuance.

When national currency gets its value from another countries currency system. Or when a security company tries to keep its prices close to par value. Refer to crawling peg and managed foreign

A plus + placed on a record when a security is sold at a higher price than previously considered. This initiates a short sale. AKA uptick. Refer to minus, zero plus, and

When assets are greater than liabilies. Refer to gap, gapping, and negative gap.

Early mortgage payment due to the sale of the home or refinancing to get a better interest rate. Refer to model and speed.

A captive where individual accounts called cells are used for selfinsurance. The cells are seperated by statute protecting them from loss. Refer to agency, group, pure, senior, sister and renta captive.

An option that pays the ending price if it is below strike price. Otherwise there is no payoff.

A fixed incomes yield curve depicting interest rates and maturity dates for a marketplace.

The flag in a chart signifing a peak point. At this peak prices drop or raise quickly.

A chart showing movement of investments without considering time. Xs and Os show up and down movement and if the trend shifts a new column is added. The chart is made to

When a companies assets exceed its liabilities. There is plenty of liquidity to cover obligatins. Refer to negative working capital.

The way banks calculate the speed a mortgage will be repaid. A common way is the constant repayment rate model.

A take over method where an investor presuades the board to vote against the director and create a new board in their favor. This takes a long time and can be prevented

An option where the buyer is paid the difference between the strike price and the lowest price. Refer to option on the maximum/minimum, lookback option, and call on the maximum.

An event that causes coupon rates to be suspened to prevent further loss.

When a manager only fills offers on one side keeping the rest until they see how the market is going to behave. If things go well all are let out but if

A barrier option whose barrier kicks in at only one time. This time is usually maturity. AKA european barrier option. Refer to partial barrier option.