Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: T

TAKEDOWN

The funding of a lease for 1 to 15 years. Used to fund inventory.

TERMINAL EXPOSURE

Exposure of a derivative based on its ending performance. Refer to average exposure.

TREASURY INFLATIONPROTECTED SECURITY (TIPS)

A US treasury note or bond whose profits are linked to inflation. They are sold in small amounts to make them available to retail investors.They pay coupons on a cycle with principal

TAKEOUT

Replacing one mode of financing for another.

TERMINAL WORSTCASE RISK EXPOSURE

Expected exposure of a derivative based on the worse performance of an underlying market resource. Refer to average expected, average worst case and terminal expected risk exposures.

TREASURYEURODOLLAR (TED) SPREAD

The difference between the eurodollar deposits and treasury bills that mature at the same time. The less the difference the more business improvement.

TAKEOVER

When a company offers to buy another to improve profits, clients access, and assets. It can be friendly or hostile. Refer to bid.

TEXAS HEDGE

A transaction that increases risk and produces loss.

TO BE ANNOUNCED (TBA)

A mortgage that trades as a when issued security. Its presence is announced but the price is not decided yet.

TREATY FACILITY

When a companies captives can access reinsurance markets. A small percentage of exposure is insured through reinsurance.

TAKEOVER BID

The price paid for a company. Refer to anyandall bid, two tier bid, and take over.

THETA

An options value changes over time if all variables are constant. AKA omega. Refer to delta, gamma, greeks, rho, time decay, time value, and vega.

TOBIN

A ratio expressing the earnings needed. If below a 1 it needs more cash flow if above a 1 it is doing well on its return rate.

TRENDLINE

A chart connecting the lowest and highest prices over time to display the assets trend.

TAP ISSUE

UK government bills sold to their own entities. No gilt edge market makers are used.

THIN MARKET

A market that is illiquid. It has low volume, high spreads, and high volatility. Refer to tight market.

TREYNOR INDEX

Comparing the risk premium and risk of a portfolio. It uses the security market line as the benchmark.

Topic Archives:

Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.