The redraft of existing, disparate insurance contracts into the new master policy to combine risks and losses under a concise policy. Refer to attachment method.

Assets or securities that are offered in a large quantity or a change in an assets position.

An extension of the pure captive by an insurer or reinsurer that writes insurance to cover companies that form an

The sale of a short position. The market price will decline. Refer to short naked shorting.

When stop orders cause upward or downward market movement setting off additional stop orders, continuing until several cycles occur. Refer to gather in the stops.

When excess risk capacity lowers premiums. This causes an expansion of business due to a more affordable premium rate. The extra capital is used to cover the new risk. Refer to hard

When a bank is interested in establishing good relationships with its borrowers by offering loans with below market interest rates, long repayment periods, and repeated rescheduling or rollover of the principal.

The spread illustrating the difference between natural gas and electricity. The spread is bought while in positive margins and sold once the margins become negative. Refer to crack spread.

Currency that was brought about in 1970 to supplement national reserves and maintain foreign exchange market stability. This is a convertible currency.

Illegally enticing business from favored clients using allocations to establish a quid pro quo arrangement.

A company added to prevent bankruptcy by arranging securitization for the sponsor. This company must become a charitable trust that is owned by a third party. The company and sponsor share equity.

The prevention of the issuer of a bond by an indenture preventing the recovery of the bond until the attainment of a certain price or a distinct percent of the conversion price

A position this is borrowed or sold that benefits from depreciation. When repurchased in the market profit is made. AKA short. Refer to long position, naked short, short sale, and short seller.

Risk due to changes between two assets with a common link. This is a category of market risk.

When the difference between two assets and a strike price are used to pay off debt or loss. AKA difference, outperformance, and underperformance options. Refer to multi index option and yield curve

An illusion of an earnings boost when a company

When investors sell commodities that suddenly increase in price leading to distorted prices. Refer to short squeeze.

A UK GILT STRIP security known as a Sterling Transfer Accruing Government Security.

The trigger of a change from annual to staggered reelection of the director of a company by offering external tender as an antitakeover defense.

A strategy whereby several financial factors combine to expose or protect the price of a commodity. Refer to bull spread, bear spread, effective spread, quoted spread, and realized spread.