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GNMA-I |
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Definition of GNMA-IGNMA-IMortgage-backed securities (MBS) on which registered holders receive separate principal and
Related Terms:GNMA-IIMortgage-backed securities (MBS) on which registered holders receive an aggregate principal and GNMA MidgetA gnma pass-through certificate backed by fixed rate mortgages with a 15 year maturity. attribute-based costing (ABC II)an extension of activitybased costing using cost-benefit analysis (based on increased customer utility) to choose the product attribute Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA)A federal Act shielding employers from liability if they have made manufacturing resource planning (MRP II)a fully integrated materials requirement planning system that involves Manufacturing resource planning (MRP II)An expansion of the material requirements planning concept, with additional computer-based capabilities in the areas of MM's proposition IIThe required rate of return on equity increases as the firm’s debt-equity ratio increases. ![]() Modigliani and Miller Proposition IIA proposition by Modigliani and Miller which states that the cost of MRP IIsee manufacturing resource planning Accelerated cost recovery system (ACRS)Schedule of depreciation rates allowed for tax purposes. Accelerated depreciationAny depreciation method that produces larger deductions for depreciation in the accelerated depreciation(1) The estimated useful life of the fixed asset being depreciated is Accelerated depreciationAny of several methods that recognize an increased amount Accounting rate of return (ARR)A method of investment appraisal that measures accounting rate of return (ARR)the rate of earnings obtained on the average capital investment over the life of a capital project; computed as average annual profits divided by average investment; not based on cash flow Accounts Payable Days (A/P Days)The number of days it would take to pay the ending balance ![]() Accounts Receivable Days (A/R Days)The number of days it would take to collect the ending Accrued interestThe accumulated coupon interest earned but not yet paid to the seller of a bond by the Accrued InterestThe amount of interest accumulated on a debt security between Accrued InterestThe amount of interest owing but not paid. acid test ratio (also called the quick ratio)The sum of cash, accounts receivable, and short-term marketable Active portfolio strategyA strategy that uses available information and forecasting techniques to seek a Adjustable rate preferred stock (ARPS)Publicly traded issues that may be collateralized by mortgages and MBSs. After-tax real rate of returnMoney after-tax rate of return minus the inflation rate. Agency pass-throughsmortgage pass-through securities whose Principal and interest payments are AgentThe decision-maker in a Principal-agent relationship. Agentone who represents Canada Life when providing services to clients ![]() Aggregate DemandTotal quantity of goods and services demanded. Aggregate Demand CurveCombinations of the price level and income for which the goods and services market is in equilibrium, or for which both the goods and services market and the money market are in equilibrium. Aggregate Expenditure Curveaggregate demand for goods and services drawn as a function of the level of national income. Aggregate planningA budgeting process using summary-level information to Aggregate Production FunctionAn equation determining aggregate output as a function of aggregate inputs such as labor and capital. Aggregate SupplyTotal quantity of goods and services supplied. Aggregate Supply CurveCombinations of price level and income for which the labor market is in equilibrium. The short-run aggregate supply curve incorporates information and price/wage inflexibilities in the labor market, whereas the long-run aggregate supply curve does not. All equity rateThe discount rate that reflects only the business risks of a project and abstracts from the All-in costTotal costs, explicit and implicit. All or noneRequirement that none of an order be executed unless all of it can be executed at the specified price. All-or-none underwritingAn arrangement whereby a security issue is canceled if the underwriter is unable allocateassign based on the use of a cost driver, a cost predictor, allocationthe systematic assignment of an amount to a recipient AllocationThe process of storing costs in one account and shifting them to other Allocation base A measure of activity or volume such as labourhours, machine hours or volume of production Allowance for bad debtsAn offset to the accounts receivable balance, against which Allowance for doubtful accountsA contra account related to accounts receivable that represents the amounts that the company expects will not be collected. Allowance for Doubtful AccountsAn estimate of the uncollectible portion of accounts receivable Allowance methodA method of adjusting accounts receivable to the amount that is expected to be collected based on company experience. Alternative mortgage instrumentsVariations of mortgage instruments such as adjustable-rate and variablerate Amortizing interest rate swapSwap in which the Principal or national amount rises (falls) as interest rates Annual percentage rate (APR)The periodic rate times the number of periods in a year. For example, a 5% annual percentage rate (APR)interest rate that is annualized using simple interest. Annual percentage yield (APY)The effective, or true, annual rate of return. The APY is the rate actually approximated net realizable value at split-off allocationa method of allocating joint cost to joint products using a Arithmetic average (mean) rate of returnArithmetic mean return. Asset allocation decisionThe decision regarding how an institution's funds should be distributed among the Asset-Backed SecuritiesBond or note secured by assets of company. Asset-backed securityA security that is collateralized by loans, leases, receivables, or installment contracts At-the-moneyAn option is at-the-money if the strike price of the option is equal to the market price of the attribute-based costing (ABC II)an extension of activitybased costing using cost-benefit analysis (based on increased customer utility) to choose the product attribute Auction rate preferred stock (ARPS)Floating rate preferred stock, the dividend on which is adjusted every Automatic Benefits PaymentAutomatic payment of moneys derived from a benefit. Average (across-day) measuresAn estimation of price that uses the average or representative price of a Average collection period, or days' receivablesThe ratio of accounts receivables to sales, or the total Average maturityThe average time to maturity of securities held by a mutual fund. Changes in interest rates Average rate of return (ARR)The ratio of the average cash inflow to the amount invested. Average tax rateTaxes as a fraction of income; total taxes divided by total taxable income. average tax rateTotal taxes owed divided by total income. Balance of paymentsA statistical compilation formulated by a sovereign nation of all economic transactions Balance of PaymentsThe difference between the demand for and supply of a country's currency on the foreign exchange market. Balance of Payments AccountsA statement of a country's transactions with other countries. Balloon maturityAny large Principal payment due at maturity for a bond or loan with or without a a sinking Barbell strategyA strategy in which the maturities of the securities included in the portfolio are concentrated Base interest rateRelated: Benchmark interest rate. Base YearThe reference year when constructing a price index. By tradition it is given the value 100. Basic business strategiesKey strategies a firm intends to pursue in carrying out its business plan. Basis pointIn the bond market, the smallest measure used for quoting yields is a basis point. each percentage Basis Pointone one-hundredth of one percent Basis pointone hundredth of one percentage point, or 0.0001. Basis Pointone one-hundredth of a percentage point, used to express variations in yields. For example, the difference between 5.36 percent and 5.38 percent is 2 basis points. Benchmark interest rateAlso called the base interest rate, it is the minimum interest rate investors will Best-interests-of-creditors testThe requirement that a claim holder voting against a plan of reorganization Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit CommitteesA committee formed in response to SEC chairman Arthur Levitt's initiative to improve the financial Bond pointsA conventional unit of measure for bond prices set at $10 and equivalent to 1% of the $100 face Book-entry securitiesThe Treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the book rate of returnAccounting income divided by book value. Borrower falloutIn the mortgage pipeline, the risk that prospective borrowers of loans committed to be Break-even lease paymentThe lease payment at which a party to a prospective lease is indifferent between Break-even payment rateThe prepayment rate of a MBS coupon that will produce the same CFY as that of break-even point (BEP)the level of activity, in units or dollars, at which total revenues equal total costs Break-even tax rateThe tax rate at which a party to a prospective transaction is indifferent between entering Breakeven pointThe point at which total costs equal total revenue, i.e. where there is neither a profit nor a loss. breakeven pointThe annual sales volume level at which total contribution Breakeven pointThe sales level at which a company, division, or product line makes a Broker loan rateRelated: Call money rate. Bullet strategyA strategy in which a portfolio is constructed so that the maturities of its securities are highly Buy-and-hold strategyA passive investment strategy with no active buying and selling of stocks from the CallAn option that gives the right to buy the underlying futures contract. Call a. An option to buy a certain quantity of a stock or commodity for a Call an optionTo exercise a call option. Call dateA date before maturity, specified at issuance, when the issuer of a bond may retire part of the bond Call money rateAlso called the broker loan rate , the interest rate that banks charge brokers to finance Call optionAn option contract that gives its holder the right (but not the obligation) to purchase a specified Call OptionA contract that gives the holder the right to buy an asset for a call optionRight to buy an asset at a specified exercise price on or before the exercise date. Call priceThe price, specified at issuance, at which the issuer of a bond may retire part of the bond at a Call priceThe price for which a bond can be repaid before maturity under a call provision. Call protectionA feature of some callable bonds that establishes an initial period when the bonds may not be Call provisionAn embedded option granting a bond issuer the right to buy back all or part of the issue prior Call riskThe combination of cash flow uncertainty and reinvestment risk introduced by a call provision. Call swaptionA swaption in which the buyer has the right to enter into a swap as a fixed-rate payer. The Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |