- Industry: Financial services
- Number of terms: 73910
- Number of blossaries: 1
- Company Profile:
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A test that measures the extent to which the value of an asset is protected from potential loss either through insurance or hedging.
Industry:Financial services
Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. Typically, such issues have a set floor or ceiling, called caps and collars that limits the adjustment.
Industry:Financial services
A mortgage that features predetermined adjustments of the loan interest rate at regular intervals based on an established index. The interest rate is adjusted at each interval to a rate equivalent to the index value plus a predetermined spread, or margin, over the index, usually subject to per-interval and to life-of-loan interest rate and/or payment rate caps.
Industry:Financial services
Publicly traded issues that may be collateralized by mortgages and MBS
Industry:Financial services
Method of calculating finance charges that uses the account balance remaining after adjusting for all transactions posted during the given billing period as its basis. Related: Average daily balance method, previous balance method, past due balance method.
Industry:Financial services
Price from which to calculate and derive capital gains or losses upon sale of an asset. Account actions such as any stock splits that have occurred since the initial purchase must be accounted for.
Industry:Financial services
Term used in options on Ginnie Mae (Government National Mortgage Association) contracts. The final exercise price of the option accounts for the coupon rates carried on Ginnie Mae mortgages. For example, if the standard GNMA mortgage has an 9% yield, the price of GNMA pools with 13% mortgages in them is altered so that the investor receives the same yield.
Industry:Financial services
A bond issued in exchange for outstanding bonds when a corporation facing bankruptcy is recapitalized.
Industry:Financial services
IRS rules used to allocate income on export sales to a foreign sales corporation.
Industry:Financial services
Increase in the market price of stocks, bonds, commodities, or other assets.
Industry:Financial services
