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Financial Terms | |
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Definition of GenericGenericRefers to the characteristics and/or experience of the total universe of a coupon of MBS sector type;
Related Terms:Financing InstrumentsThis is a generic term that refers to the many different forms of financing a business may use. For example - loans, shares, and bonds are all considered financing instruments. Line itemgeneric types of assets, liabilities, income or expense that are common to all businesses and Segregated FundSometimes called seg funds, segregated funds are the life insurance industry equivalent to a mutual fund with some differences.The term "Mutual Fund" is often used generically, to cover a wide variety of funds where the investment capital from a large number of investors is "pooled" together and invested into specific stocks, bonds, mortgages, etc. Stripped mortgage-backed securities (SMBSs)Securities that redistribute the cash flows from the Wall Streetgeneric term for firms that buy, sell, and underwrite securities. 45-Degree LineA line representing equilibrium in the goods and services market, on a diagram with aggregate demand on the vertical axis and aggregate supply on the horizontal axis. Alternative mortgage instrumentsVariations of mortgage instruments such as adjustable-rate and variablerate ![]() Asset-based financingMethods of financing in which lenders and equity investors look principally to the Asset-Based FinancingLoans granted usually by a financial institution where the asset being financed constitutes the sole security given to the lender. Back-to-back financingAn intercompany loan channeled through a bank. balancing itemVariable that adjusts to maintain the consistency Bank lineline of credit granted by a bank to a customer. bottom lineA commonly used term that refers to the net income (profit) Bridge financingInterim financing of one sort or another used to solidify a position until more permanent Capital market line (CML)The line defined by every combination of the risk-free asset and the market portfolio. Cash-equivalent itemsTemporary investments of currently excess cash in short-term, high-quality ![]() Cash Flow Provided or Used from Financing ActivitiesCash receipts and payments involving Cash flow time-lineline depicting the operating activities and cash flows for a firm over a particular period. CASH FLOWS FROM FINANCING ACTIVITIESA section on the cash-flow statement that shows how much cash a company raised by selling stocks or bonds this year and how much was paid out for cash dividends and other finance-related obligations. Characteristic lineThe market model applied to a single security. The slope of the line is a security's beta. Cost of lease financingA lease's internal rate of return. Counterpart itemsIn the balance of payments, counterpart items are analogous to unrequited transfers in the Debt FinancingRaising loan capital through the creation of debt by issuing a form of paper evidencing amounts owed and payable on specified dates or on demand. Debtor-in-possession financingNew debt obtained by a firm during the Chapter 11 bankruptcy process. Demand line of creditA bank line of credit that enables a customer to borrow on a daily or on-demand basis. Derivative instrumentsContracts such as options and futures whose price is derived from the price of the Euro lineslines of credit granted by banks (foreign or foreign branches of U.S. banks) for Eurocurrencies. Export FinancingA range of financing products (loans. guarantees, letters of credit, insurance etc.) in support of a variety of activities which help Canadian firms expand into new export markets. Extraordinary itemA transaction that rarely occurs, and which is unusual, such as Federal Financing BankA federal institution that lends to a wide array of federal credit agencies funds it financing activitiesOne of the three classes of cash flows reported in the financing decisiona judgment made regarding the method financing decisionDecision as to how to raise the money to pay for investments in real assets. Financing decisionsDecisions concerning the liabilities and stockholders' equity side of the firm's balance Fixed-income instrumentsAssets that pay a fixed-dollar amount, such as bonds and preferred stock. Formalized Line of CreditA contractual commitment to make loans to a particular borrower up to a specified maximum during a specified period, usually one year. InstrumentsFinancial securities, such as money market instruments or capital market insturments. Investment product line (IPML)The line of required returns for investment projects as a function of beta Item master fileA file containing all item-specific information about a component, Item numberA number uniquely identifying a product or component. line employeean employee who is directly responsible for Line of credit An informal arrangement between a bank and a customer establishing a maximum loan Line of creditAn informal arrangement between a bank and a customer establishing a maximum loan line of creditAgreement by a bank that a company may borrow at any time up to an established limit. Line of CreditAn agreement negotiated between a borrower and a lender which establishes the maximum amount against which a borrower may draw. The agreement also sets out other conditions, such as how and when money borrowed against the line of credit is to be repaid. line of creditA revolving source of credit with a pre-established limit. You access the funds only as you need them, and any amount that you pay back becomes accessible to you again. Unlike a personal loan, a line of credit permits you to write cheques and make bank machine withdrawals, and requires you to pay interest only on the funds that you actually use. Linear programmingTechnique for finding the maximum value of some equation subject to stated linear constraints. linear programminga method of mathematical programming used to solve a problem that involves an objective function and multiple limiting factors or constraints long-term variable cost a cost that was traditionally viewed as a fixed cost Linear regressionA statistical technique for fitting a straight line to a set of data points. Log-linear least-squares methodA statistical technique for fitting a curve to a set of data points. One of the Management Accounting Guidelines (MAGs)pronouncements of the Society of Management Accountants of Mortgage pipelineThe period from the taking of applications from prospective mortgage borrowers to the Mortgage-pipeline riskThe risk associated with taking applications from prospective mortgage borrowers Multi-option financing facilityA syndicated confirmed credit line with attached options. Net financing costAlso called the cost of carry or, simply, carry, the difference between the cost of financing net income (also called the bottom line, earnings, net earnings, and netoperating earnings) Nonrecurring ItemsRevenues or gains and expenses or losses that are not expected to recur Off-balance-sheet financingfinancing that is not shown as a liability in a company's balance sheet. Old-line factoringFactoring arrangement that provides collection, insurance, and finance for accounts receivable. online bill paymentThe electronic payment of a bill via the Internet. The specified amount of the bill is electronically debited from your account. Operating Line of CreditA bank's commitment to make loans to a particular borrower up to a specified maximum for a specified period, usually one year. Other-than-Temporary Decline in Market ValueThe standard used to describe a decline in market value that is not expected to recover. The use of the other-than-temporary description as Personal Line of credit (Credit Insurance)A bank's commitment to make loans to a borrower up to a specified maximum during a specific period, usually one year. personal line of credit (PLC)A revolving source of credit with a pre-established limit. You access the funds only as you need them, and any amount that you pay back becomes accessible to you again. Unlike a personal loan, a PLC permits you to write cheques and make bank machine withdrawals, and requires you to pay interest only on the funds that you actually use. Planned financing programProgram of short-term and long-term financing as outlined in the corporate product line marginsee segment margin Production payment financingA method of nonrecourse asset-based financing in which a specified Project FinancingDebt finance, usually non-recourse, provided by financial institutions for the development and construction of a new project. red-line systeman inventory ordering system in which a red Refinancing (Credit Insurance)Extending the maturity date or increasing the amount of existing debt or both. Also, revising a payment schedule, usually to reduce the monthly payments and often to modify interest charges. regression lineany line that goes through the means (or averages) of the set of observations for an independent variable and its dependent variables; mathematically, there is a line of “best fit,” which is the least squares regression line Revolving line of creditA bank line of credit on which the customer pays a commitment fee and can take secured loan or line of creditA lump sum of funds (loan), or a revolving source of credit with a pre-established limit (line of credit), for which the customer must provide collateral. Security characteristic lineA plot of the excess return on a security over the risk-free rate as a function of Security market lineline representing the relationship between expected return and market risk. Security Market LineA graph illustrating the equilibrium relationship between the security market lineRelationship between expected return and beta. Seed Financing/CapitalGenerally, refers to the first contribution of capital toward the financing requirements of a start-up business. Simple linear regressionA regression analysis between only two variables, one dependent and the other explanatory. Simple linear trend modelAn extrapolative statistical model that asserts that earnings have a base level and Slow-moving itemAn inventory item having a slower rate of turnover than the Special ItemsSignificant credits or charges resulting from transactions or events that, in the Straight-lineA method of depreciation. Straight line depreciationAn equal dollar amount of depreciation in each accounting period. STRAIGHT-LINE DEPRECIATIONA depreciation method that depreciates an asset the same amount for each year of its estimated straight-line depreciationThis depreciation method allocates a uniform straight-line depreciationConstant depreciation for each year of the asset’s accounting life. Swingline facilityBank borrowing facility to provide finance while the firm replaces U.S. commercial paper Threshold for refinancingThe point when the WAC of an MBS is at a level to induce homeowners to timelinerepresentation of the amounts and timing of all Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |