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.

A swap exchanging realized and implied volatility for a market reference. This is common for equith and foreign exchange markets. Refer to variable swap.

The legal review focusing on the board of directors actions just prior to the financial difficulties that is performed by external parties as a result of a declaration of bankruptcy.

The adjustment of insurance premium rates based on the losses incurred over the current year.

The ratio between the net income and average total assets measured during an identified period of time.

A formula used to determine profit made by an investment or to compare several investments to determine which ones generate the most capital.

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.

A loan given to a municipalities project that is repaid by revenue from the project itself such as a toll road. Refer to general obligation bond.

An insurance policy that covers existing and incurred but not yet reported losses up to a dollar amount. Refer to loss portfolio transfer and retrospective finite policy.

When an inthemoney option is created out of a latent option by pushing the barrier above the strike price. AKA kickin option. Refer to reverse knockout option.

When a lender gives monthly payments to a borrower using their property equity. This is usually done by elderly homeowners resulting in the borrower eventually owning the home.

Stocks that are offered for purchase by the public by companies that have been privately purchased in an effort to reduce their debt.

When a firm repos securities from a party that pays a finance charge in agreement to sell them at a higher price at a predetermined date in the future. AKA reverse, resale,

When a holder sells high coupon securities back with the understanding that at maturity, they will be able to repurchase these securities.