Assets in a bank exposed to interest rate changes. Refer to asset liability management and ratesensitive liabilities.

Whan an option writer sells both naked and covered options. They are sold in specific amounts and ratios. This is safer than a pure naked option position.

An option spread that creates profit from volatile circumstances. A small amount of closertothemoney options are bought than fartherfromthemoney options. Refer to backspread.

A hostile buyer who tries to buy another company. They usually strip assets or get greenmail payments. This was common in the 1980s but there are still buyers like this out there.

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 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

Regrouping principal and interest after it has been stripped. This creates arbitrage opportunities. This happens when longterm securities are split into zero coupon bonds. Refer to stripping.

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

When a bank refuses funds for an insurance company due to previous losses. It is illegal in many jurisdictions.

A transaction between a related entity and a company.

Reactivating insurance cancelled due to nonpayment. The insurance company has the right to charge a higher premium.

When insured parties group together to protect one another. New members are sought to prevent loss. AKA recriprocal insurance exchange.

a trust wherein the employee is not taxed because the plan’s assets can be claimed by creditors. This name is used because the first of these type of trusts was set up

The chance that an asset will be reinvested at a less than favorable rate. This can cause great loss. AKA refinancing risk or reinvestment risk. Refer to negative gap, positive gap, ratesensitive

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.

Renegotiating a loan with new terms that help the debtor avoid foreclosure. Refer to renegotiated loan.

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

Using a retrocession contract to defer responsibility from the retrocedant to a retrocessionaire. Refer to cede, recessionaire, and retrocedant.

The first party involved in the contractual transfer of responsibility to another party.

The second sale offering of securities under the existing issue. This helps raise benchmarks by grouping more liquidity in a smaller amount of issues.