RISK MONITORING
The tracking and reporting of exposures to risk to external stakeholders. Refer to risk identification, risk management, and risk quantification.
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The tracking and reporting of exposures to risk to external stakeholders. Refer to risk identification, risk management, and risk quantification.
The closing of an option to obtain a higher strike price. Refer to roll down and roll forward.
The difference between average bids and offers over a period of time. Refer to effective and quoted spreads.
The second sale offering of securities under the existing issue. This helps raise benchmarks by grouping more liquidity in a smaller amount of issues.
An insurance policy with a premium that is based on the previous year
The purchase of goods or services by a bank or investment bank in exchange for lucrative feebased new issue or corporate finance mandates. Refer to tying.
A firms formal take on corporate goals, activities, and stakeholders expectations regarding risk activities. Refer to risk tolerance.
When a variable rate of interest is exchanged for a fixed rate of interest to accommodate flexibility between two terms experiencing different financial needs. Refer to variable principal swap.
A swap exchanging realized and implied volatility for a market reference. This is common for equith and foreign exchange markets. Refer to variable swap.
When bankruptcy is files this occurs. The company is analyzed by trustee to liquidate assets and pay off claims. This is done before a court decides what to do with the company.
The ratio between the net income and average total assets measured during an identified period of time.
The relative change in the cost of an option making it a risk free rate holding all other variables constant. Refer to delta, gamma, theta, greeks, and vega.
The concept that the level of risk can be reduced by combining uncorrelated risks. AKA pooling.
Gaining capital by purchasing and holding longterm bonds in the event of declining yields. AKA riding the curve.
Restructuring a company to create more equity and reduce debt. The company may be solvent or filing for bankruptcy. Or reorganizing the voting abilities of stock. AKA deleveraging. Refer to dual class
When an asset is repurchased by a lender the borrower must pay this interest rate. It is usually lower than before since it is secured by collateral.
The total, unadjusted return generated for shareholders by a firm during an identified period of time. Refer to risk adjusted return on capital.
When a holding is at its highest price and a firm will benefit from selling it.
The higher payments made to a firm that invests in high risk ventures with the possibility of default. AKA risk margin. Refer to premium.
A risk reducing strategy that involves closing out nearby or next nearby derivative contracts and then repurchasing to push out the maturity date. AKA stack and roll. Refer to strip hedge.