Category: R

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.

A note that gives an investor better coupon rates than a RFN. If the interest rates fall short of an agreed to range the interest is lost for a period of time

In the US the registration of a new issue filed by a company to the securities and exchange commission.There are not details in this report and it must be updated often as

A sum of retained or restricted surplus placed in an account that can only be used to pay in the event that the investor has arrears from a breach of covenant or

A trade between two parties of a fixed interest rate with a floating interest rate where there is an increase in the notional principal as the result of an increase in the

A firms ability to identify their financial resources, expertise, and operating mandate to determine how much risk they are able to take.

The basic concept of the payment of a premium by someone who is unable to withstand a loss to a firm who agrees according to the terms of the policy to cover

This guarantees a borrower an interest rate on a loan for 30 to 90 days. This makes all financing costs known for the period of time. AKA lockin provision. Refer to drop

Discounting an instrument a second time. Each time a discount is given the credit risk goes up.

The first party involved in the contractual transfer of responsibility to another party.

When an inthemoney option is created out of a latent option by pushing the barrier above the strike price. AKA kickin option. Refer to reverse knockout option.

Economic capital set aside to cover risk related exposure and losses. It can be handled internally or with regulations. Refer to regulatory capital and risk adjusted return on capital.

The calibration of a firms financial andor operating risk and its economic capital to determine its ability to withstand unexpected losses. Refer to regulator capital and risk adjusted return on capital.

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.