![]() |
|
Financial Terms | |
Benchmark |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: finance, credit, investment, inventory control, money, financial advisor, stock trading, payroll, |
Definition of BenchmarkBenchmarkA standard by which something may be compared and measured BenchmarkThe performance of a predetermined set of securities, for comparison purposes. Such sets may be
Related Terms:Benchmark errorUse of an inappropriate proxy for the true market portfolio. Benchmark interest rateAlso called the base interest rate, it is the minimum interest rate investors will Benchmark issuesAlso called on-the-run or current coupon issues or bellwether issues. In the secondary benchmarkingthe process of investigating how others do something better so that the investigating company can imitate, Customized benchmarksA benchmark that is designed to meet a client's requirements and long-term Posttrade benchmarksPrices after the decision to trade. ![]() Pre-trade benchmarksPrices occurring before or at the decision to trade. process benchmarkingbenchmarking that focuses on practices and how the best-in-class companies achieved their results results benchmarkingbenchmarking in which an end product or service is examined; the focus is on product/service specifications and performance results Sharpe benchmarkA statistically created benchmark that adjusts for a managers' index-like tendencies. Agency basisA means of compensating the broker of a program trade solely on the basis of commission Base interest rateRelated: benchmark interest rate. Bellwether issuesRelated:benchmark issues. Break-even payment rateThe prepayment rate of a MBS coupon that will produce the same CFY as that of Current-coupon issuesRelated: benchmark issues Equity capAn agreement in which one party, for an upfront premium, agrees to compensate the other at Equity floorAn agreement in which one party agrees to pay the other at specific time periods if a specific Floating-rate contractA guaranteed investment contract where the credit rating is tied to some variable Hurdle RateA pre-determined benchmark rate of return. If the rate of return expected from the project or investment falls below the benchmark, the projected investment will no longer be accepted. Inverse floating rate noteA variable rate security whose coupon rate increases as a benchmark interest rate declines. Normal portfolioA customized benchmark that includes all the securities from which a manager normally Performance evaluationThe evaluation of a manager's performance which involves, first, determining prime ratebenchmark interest rate charged by banks. Reference rateA benchmark 'interest rate (such as LIBOR), used to specify conditions of an interest rate Replicating portfolioA portfolio constructed to match an index or benchmark. Spread1) The gap between bid and ask prices of a stock or other security. standarda model or budget against which actual results are Tracking errorIn an indexing strategy, the difference between the performance of the benchmark and the weighted-average cost of capitalWeighted means that the proportions of Yield curveGraph of yields (vertical axis) of a particular type of security Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |