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.
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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.
A firms ability to cover its debt. The better the ratio the stronger the coverage.
The difference between the eurodollar deposits and treasury bills that mature at the same time. The less the difference the more business improvement.
When a company offers to buy another to improve profits, clients access, and assets. It can be friendly or hostile. Refer to bid.
A transaction that increases risk and produces loss.
A mortgage that trades as a when issued security. Its presence is announced but the price is not decided yet.
When a companies captives can access reinsurance markets. A small percentage of exposure is insured through reinsurance.
The price paid for a company. Refer to anyandall bid, two tier bid, and take over.
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.
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.
A chart connecting the lowest and highest prices over time to display the assets trend.
UK government bills sold to their own entities. No gilt edge market makers are used.
A market that is illiquid. It has low volume, high spreads, and high volatility. Refer to tight market.
An offer to deposit into the Tokyo market. It is used as a reference.
Comparing the risk premium and risk of a portfolio. It uses the security market line as the benchmark.
The yield on tax free securities. It is compared with taxable investment opportunities. Refer to yield to maturity, yield to call, simple yield, bond equivalent yield, and discount yield.
A marketplace for trading over the counter interests. Or exchanging between nonmember firms.
An index of all the stock on the Japanese stock exchange. It is subdivided by size and industry.
A chart that looks like a triangle. The price changes are shown as two points on the bottom and one at the top. Any breakout from the triangle indicates a move upward
The closeout price of a derivative. It is used to calculate profit spread. AKA unwind price.