Category: T

Accepting a sellers price. Refer to hit the bid.

Expected exposure of a derivative based on an underlying market reference. Refer to average expected, average worstcase, and terminal worstcase exposures.

The remaining value of a contract attributed to time. The value declines daily. Refer to theta and time decay.

Loss that occurs when a foreign exchange currency is turned into the home countries monetary unit. It is reflected in an equity account. AKA currency translation risk. Refer to transaction risk.

When an institution offers a client a loan at a low margin in exchange for better business opportunites in the future. This is sometimes illegal. Refer to reverse tying.

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

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

The theory that the money owned now will be worth more in the future.

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

Replacing one mode of financing for another.

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.