|Events of default|
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Definition of Events of default
Events of default
Contractually specified events that allow lenders to demand immediate repayment of a debt.
A provision under which default on one debt obligation triggers default on another debt
Failure to make timely payment of interest or principal on a debt security or to otherwise comply
The failure by a debtor to make a principal or interest payment in a timely
Failure of a debtor to make timely payments of principal and interest as they become due.
A differential in promised yield that compensates the investor for the risk inherent in
Difference in promised yields between a default-free bond and a riskier bond.
Also referred to as credit risk (as gauged by commercial rating companies), the risk that an
An estimation of price that uses the average or representative price of a
Refers to the volatility of returns on international investments caused by events associated
The practice of hedging with a futures contract that is different from the underlying being
One corporation holds shares in another firm.
The exchange rate between two currencies expressed as the ratio of two foreign exchange rates
A statistical methodology applied to a set of firms at a particular point in time.
The return at which two alternative projects have the same net present value.
Contracts with trigger points that, when crossed, automatically generate buying or selling of
The costs of (cross-functional) business processes, irrespective of the organizational structure of the business.
Strategy designed to reduce risk by spreading the portfolio across many investments.
A cross-border lease in which the disparate rules of the lessor's and lessee's countries let
enterprise resource planning (ERP) system
a packaged software program that allows a company to
Money that moves across country borders in response to interest rate differences and that moves
Interest Rate Parity
Theory that real interest rates are approximately the same across countries except for a risk premium.
The attempt to reduce risk by investing in the more than one nation. By
Lag response of prepayments
There is typically a lag of about three months between the time the weighted
The tendency of a pool of MBSs to reflect an especially high rate or prepayments the first time
A 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.
Adjustment 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.
Lease accounting used by a manufacturer who is also a lessor. Up-front gross
Second pass regression
A cross-sectional regression of portfolio returns on betas. The estimated slope is the
Also called undiversifiable risk or market risk, the minimum level of risk that can be
Zero curve, zero-coupon yield curve
A yield curve for zero-coupon bonds;
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