Category: R

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.

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