![]() |
|
Financial Terms | |
Events of default |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: finance, stock trading, financial advisor, inventory control, tax advisor, financial, credit, money, |
Definition of Events of defaultEvents of defaultContractually specified events that allow lenders to demand immediate repayment of a debt.
Related Terms:Cross defaultA provision under which default on one debt obligation triggers default on another debt DefaultFailure to make timely payment of interest or principal on a debt security or to otherwise comply DefaultThe failure by a debtor to make a principal or interest payment in a timely DefaultFailure of a debtor to make timely payments of principal and interest as they become due. Default premiumA differential in promised yield that compensates the investor for the risk inherent in default premiumDifference in promised yields between a default-free bond and a riskier bond. Default riskAlso referred to as credit risk (as gauged by commercial rating companies), the risk that an ![]() Average (across-day) measuresAn estimation of price that uses the average or representative price of a Cross-border riskRefers to the volatility of returns on international investments caused by events associated Cross hedgingThe practice of hedging with a futures contract that is different from the underlying being Cross holdingsOne corporation holds shares in another firm. Cross ratesThe exchange rate between two currencies expressed as the ratio of two foreign exchange rates Cross-sectional approachA statistical methodology applied to a set of firms at a particular point in time. Crossover rateThe return at which two alternative projects have the same net present value. Barrier optionsContracts with trigger points that, when crossed, automatically generate buying or selling of Cost poolThe costs of (cross-functional) business processes, irrespective of the organizational structure of the business. ![]() diversificationStrategy designed to reduce risk by spreading the portfolio across many investments. Double-dip leaseA cross-border lease in which the disparate rules of the lessor's and lessee's countries let enterprise resource planning (ERP) systema packaged software program that allows a company to Hot moneyMoney that moves across country borders in response to interest rate differences and that moves Interest Rate ParityTheory that real interest rates are approximately the same across countries except for a risk premium. International diversificationThe attempt to reduce risk by investing in the more than one nation. By Lag response of prepaymentsThere is typically a lag of about three months between the time the weighted OvershootingThe tendency of a pool of MBSs to reflect an especially high rate or prepayments the first time PLUS systemA bank machine network outside Canada, across the U.S. and internationally. Customers who use a bank machine with a 'PLUS' symbol may be charged a fee. Price-specie-flow mechanismAdjustment mechanism under the classical gold standard whereby purchasing power parity (PPP)Theory that the cost of living in different countries is equal, and exchange rates adjust to offset inflation differentials across countries. Sales-type LeaseLease accounting used by a manufacturer who is also a lessor. Up-front gross Second pass regressionA cross-sectional regression of portfolio returns on betas. The estimated slope is the Systematic riskAlso called undiversifiable risk or market risk, the minimum level of risk that can be Zero curve, zero-coupon yield curveA yield curve for zero-coupon bonds; Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |