Category: R

A hostile buyer who tries to buy another company. They usually strip assets or get greenmail payments. This was common in the 1980s but there are still buyers like this out there.

Regrouping principal and interest after it has been stripped. This creates arbitrage opportunities. This happens when longterm securities are split into zero coupon bonds. Refer to stripping.

Renegotiating a loan with new terms that help the debtor avoid foreclosure. Refer to renegotiated loan.

A loan given to a municipalities project that is repaid by revenue from the project itself such as a toll road. Refer to general obligation bond.

A bullish signal shown by charting rising prices and an increasing support level. Refer to ascending top, descending bottom, and falling top.

Preserving a portion of financial and/or operating risk as opposed to transferring or hedging. Refer to hedging, retention, group, risk transfer, and selfinsurance.

When an exchange traded derivative is bought and sold quickly.

A financial professional who generates new business for an institution. This person is very successful in their area of trade.

When a portfolio is sold exposure is reduced to protect both parties. The cash settlement is paid and the derivatives are rewritten at current market levels. The process is repeated at the

Funds set aside to cover costs. They are established as contraacounts on a balance sheet. They can be hidden or implied for a security.

When a forward/future is purchased at a price less than the spot price plus the cost of carry and the difference is loaned until maturity creating a profit. Refer to cashandcarry arbitrage.

The attempt to profit by merger, acquisition, hostile takeover, recapitalization, spinoff, or other transactions based on the advice of a risk arbitrageur who analyzes future opportunities.

The spreading of exposure by combining firms with similar risk factors by risk pooling. Similar to group captive this is a retention vehicle.

Expected future claims covered by reserves paid by an insurer.

A note giving an investor a better coupon interest rate. If the interest rate falls outside the agreed upon range the investor loses the interest that day. AKA accrual note, day count

The percent a creditor or claim gets after a bankruptcy is filed. Refer to loss given default and recovery.

A technique used to analyze and graph the index price level affected by repeated transfer via buying bouts to determine when a security rises above the resistance level. This can determine the

The charting of an investment that predicts a reversal in value when the pattern shows a trough (viewed as a shoulder), followed by a rise then a lower trough followed by a

A conservative view to investing when a party avoids risk believing the overall protection is worth the long term wait.

The stability of a firms portfolio in regards to how much risk it can withstand.