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Definition of Lock-up CDs
cds that are issued with the tacit understanding that the buyer will not trade the certificate.
the period after an announcement of a takeover bid in which stock prices typically rise until a merger or acquisition is made (or until it falls through).
the period before a formal announcement of a takeover bid in which one or more bidders are either preparing to make an announcement or speculating that someone else will.
1) When bond yields and prices fall, the market is said to back-up.
State of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from
The argument that expected indirect and direct bankruptcy costs offset the other
The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk.
The argument that expected bankruptcy costs preclude firms from being financed entirely
Brokerage firms that help to find potential buyers or sellers of large block trades.
A large trading order, defined on the New York Stock Exchange as an order that consists of
A group of shareholders banding together to vote their shares in a single block.
A currency that is not freely convertible to other currencies due to exchange controls.
A management style that de-emphasizes the significance of economic
The formal name for the load of a back-end load fund.
The periodic interest payment made to the bondholders during the life of the bond.
True interest cost expressed on the basis of a 365-day year.
A bond's interest payments.
In bonds, notes or other fixed income securities, the stated percentage rate of interest, usually
A bond selling at or close to par, that is, a bond with a coupon close to the yields currently
Related: Benchmark issues
An arrangement whereby the interest rate on a floating rate note or preferred stock becomes fixed
Dupont system of financial control
Highlights the fact that return on assets (ROA) can be expressed in terms
cds issued by a U.S. bank branch or foreign bank located outside the U.S. Almost all Euro cds
Buying or selling to offset an existing market position.
The amount of securities believed to be available for immediate purchase, that is, in the
Full coupon bond
A bond with a coupon equal to the going market rate, thereby, the bond is selling at par.
The loss in yield that occurs when a block of bonds is swapped for another block of lower-coupon
Group of five (G5/G-5)
The five leading countries (France, Germany, Japan, United Kingdom, and the U.S.) that
Group of seven (G7/G-7)
The G-5 countries plus Canada and Italy.
Group rotation manager
A top-down manager who infers the phases of the business cycle and allocates
High-coupon bond refunding
Refunding of a high-coupon bond with a new, lower coupon bond.
A legal proceeding for liquidating or reorganizing a business.
Bond with a stream of coupon payments that are the same throughout the life of the bond.
A collection and processing service provided to firms by banks, which collect payments from a
A market is locked if the bid = ask price. This can occur, for example, if the market is
With PAC bond CMO classes, the period before the PAC sinking fund becomes effective. With
1) Bonds or notes with a long current maturity.
Low-coupon bond refunding
Refunding of a low coupon bond with a new, higher coupon bond.
1) Bonds or notes with a long current maturity.
M1-A: Currency plus demand deposits
Pass-through coupon rate
The interest rate paid on a securitized pool of assets, which is less than the rate
The loss of cash resulting from a swap into higher price bonds or the need/willingness of a bank or
The gain in yield that occurs when a block of bonds is swapped for another block of higher-coupon bonds.
A bankruptcy in which a debtor and its creditors pre-negotiate a plan or
Pure yield pickup swap
Moving to higher yield bonds.
An agreement between the mortgage banker and the loan applicant guaranteeing a specified interest
Raw material supply agreement
As used in connection with project financing, an agreement to furnish a
All banks involved in selling or marketing a new issue of stock or bonds
To increase, as in step up the tax basis of an asset.
A bond that pays a lower coupon rate for an initial period which then increases to a higher
Provision in a company's charter requiring a majority of, say, 80% of shareholders to approve
n event that influences production capacity and costs in an economy.
A price level below which it is supposedly difficult for a security or market to fall.
A fee paid to an underwriter in connection with an underwritten rights offering or an
A network of trading desks for the major brokerage firms and institutional investors that
A term used to describe a transaction that took place at a higher price than the preceding transaction
Variable rate CDs
Short-term certificate of deposits that pay interest periodically on roll dates. On each roll
New muni bond issues scheduled to come to market within the next 30 days.
Weighted average coupon
The weighted average of the gross interest rate of the mortgages underlying the
Zero coupon bond
Such a debt security pays an investor no interest. It is sold at a discount to its face price
Related: tick-test rules.
A bond in which no periodic coupon is paid over the life of the contract. Instead, both the
The amount added to a lower figure to reach a higher figure, expressed as a percentage of the
The time required to make ready a machine or process for production, e.g. changing equipment
The cost of the supplies used in running an office.
Coupon / Coupons
The periodic interest payment(s) made by the issuer of a bond
The rate of interest paid on a debt security. Generally stated on an
A security that makes no interest payments; it is sold at a discount
equivalent units of production (EUP)
an approximation of the number of whole units of output that could have been
Foreign Corrupt Practices Act (FCPA)
a law passed by U.S. Congress in 1977 that makes it illegal for a U.S. company to engage in various “questionable” foreign payments and
the direct or indirect cost of getting equipment
the cooperative strategic planning,
Detachable certificate attached to a bond that shows the amount of
The dates when the coupons are paid. Typically a bond pays
The nominal interest rate that the issuer promises to pay the
Zero curve, zero-coupon yield curve
A yield curve for zero-coupon bonds;
Zero-coupon bond, or Zero
A bond that, instead of carrying a coupon, is sold
An increase in the cost of a product to arrive at its selling price.
The cluster of one-time costs incurred whenever a production batch is run,
The reorganization or liquidation of a firm that cannot pay its debts.
The interest payments paid to the bondholder.
Annual interest payment as a percentage of face value.
System whereby customers send payments to a post office box and a local bank collects and processes checks.
Total quantity of goods and services supplied.
Aggregate Supply Curve
Combinations 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.
The annual interest payment associated with a bond.
Any bond with a coupon. Contrast with discount bond.
A situation in which supply exceeds demand.
Real Money Supply
Money supply expressed in base-year dollars, calculated by dividing the money supply by a price index.
An amount made available for sale, always associated with a given price.
View that incentives to work, save, and invest play an important role in determining economic activity by affecting the supply side of the economy.
See discount bond.
A device used to stamp an employee’s incoming or outgoing time
Uniform Interstate Family Support Act
A federal Act specifying which jurisdiction
Costs related to such onetime activities as opening a new facility, introducing
General supplies used throughout a company and expensed at the time
Group Life Insurance
This is a very common form of life insurance which is found in employee benefit plans and bank mortgage insurance. In employee benefit plans the form of this insurance is usually one year renewable term insurance. The cost of this coverage is based on the average age of everyone in the group. Therefore a group of young people would have inexpensive rates and an older group would have more expensive rates.
That part of the issued capital of a company that has been paid up by the shareholders.
Period of delay allowed by a firm's supplier to pay its invoices. Frequently, the terms are : 2% discount on invoice if paid in 10 days or net if paid in 30 days.
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