TERMINAL EXPOSURE
Exposure of a derivative based on its ending performance. Refer to average exposure.
Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.
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
Latin for in utmost good faith. It implies that the insured will disclose all relevant information to the insurer. The insured must also fulfill all obligations of the contract
When personal assets are used to absorb business failure. Refer to piercing the corporate veil.
When reinsurers assume different layers of risk. Some reinsurers will have no loss. The higher the layer the less exposed to risk. Refer to excess layer and horizontal layering.
A security announced but not priced. It is informal but legally binding. When settled it trades like any seasoned security. Refer to to be announced and when issued treasury.
A strategy used to increase core returns. This is intended to be a low risk move. Refer to arbitrage speculation and hedging.
A loss that occured already that hasnt yet been paid. Also see ratio.
When currency loses its value due to constantly raising prices.
The cost of borrowing funds or the capital earned on loaned funds.
A broker who helps their client with their strategy. They cannot hold funds to they use the FCM.
The lender’s portfolio must hold these loans or sell them to private investors. Fannie Mae and Freddie Mac limit criteria is exceeded by this type of mortgage.
A person’s citizenship is by ‘blood’, that of the parents. This rule is followed in most countries of the world. Canada and US use Jus Solis (where born) instead.
A parent company and a subsidiary imitate such a contract to guarantee the subsidiary all necessary financing over a specified time-period. The parent company provides this. This contracted support gives potential lenders
Key business statistics as measures of a firm’s performance in critical areas. Typically, monitoring is essential for such business activities that would likely cause severe losses or outright failure if done incorrectly.
Compensatin offered to a bank so a company can use its services. Refer to equity kicker, carrot equity, and sweetner.
1. A very similar looking product copy a patented, trademarked, or copyrighted product or work that is cheaper as an illegal version. 2. A cheaper version of a higher-priced material or product
Earnings system that compensates employees skill level proficiency and gained education. The employee incentive is improve skills set and education. Reaching certain goals in education, training and skill development translates into higher
The time it takes an insurance claim to process.