SUPERSINKER
The shortest living trance of a mortgage in a series. It is retired through early repayment.
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The shortest living trance of a mortgage in a series. It is retired through early repayment.
An over the counter derivative with periodic payments. They mature in 1 to 10 years. For the foreign markets it is a pair of spot and forward transactions. The spot offsets the
A receiver payer swap where the buyer can enter a swap at a predetermined rate in the future.
The contract syndicate members agree to. It designates the structure, rules, and time period. AKA underwriting agreement. Refer to subscription agreement.
Short term back up credit given to a borrower as needed. They are used when commercial paper issuers when investors won’t roll over maturing paper. AKA backup line.
Loss that occurs when clients are mismatched with investment opportunites. Refer to ultra vires.
A forward agreement to buy undrawn loans or credit agreements. The investor gets a commitment fee. AKA synthetic credit facility.
Insurance beyone the end of a standard policy.
The right to protect minority interest in the event of a hostile takeover bid. If the bid passes the minority can join the majority. Refer to drag along rights.
When a hedge is discounted using present value because the value changes daily.
The funding of a lease for 1 to 15 years. Used to fund inventory.
The price paid for a company. Refer to anyandall bid, two tier bid, and take over.
When a company offers to buy another to improve profits, clients access, and assets. It can be friendly or hostile. Refer to bid.
A position created when long and short options are combined on the same security. Refer to synthetic long and short positions.
An asset secured loan usually having a low loan to value ratio given to a client with a poor credit history such as a delinquency or default. Refer to B & C
A low interest rate or a high deposit rate used to entice investors. After several quarters the normal rates apply.
The closeout price of a derivative. It is used to calculate profit spread. AKA unwind price.
A derivative effected by the temperature index.Payment is made based on temperature movement. It is traded on a seasonal basis. Refer to temperature linked bond.
A syndicate of banks that sells notes for an issuer. They purchase the remaining unsold securities.
An agreement to repurchase that matures in 30 days. Refer to open and overnight purchase agreement.