|REMIC (real estate mortgage investment conduit)
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Definition of REMIC (real estate mortgage investment conduit)
REMIC (real estate mortgage investment conduit)
A pass-through tax entity that can hold mortgages
Money after-tax rate of return minus the inflation rate.
Variations of mortgage instruments such as adjustable-rate and variablerate
mortgage against which no additional debt may be issued.
A security backed by a pool of pass-throughs , structured so that
A loan based on the credit of the borrower and on the collateral for the mortgage.
Automatic reinvestment of shareholder dividends in more shares of a
The return one can expect to earn on an investment. See: capital asset
The acquisition abroad of physical assets such as plant and equipment, with
A Congressionally chartered corporation that
The options to identify additional, more valuable investment opportunities
mortgages in which annual increases in monthly payments are used to
First issued by Freddie Mac in 1975, GMCs, like PCs, represent
A wholly owned U.S. government corporation
A type of stepped-payment loan in which the borrower's payments
A pure investment product in which a life company agrees, for a
Related: financial analysts
Financial intermediaries who perform a variety of services, including aiding in the sale of
Decisions concerning the asset side of a firm's balance sheet, such as the decision to
Investment grade bonds
A bond that is assigned a rating in the top four categories by commercial credit
The revenue from a portfolio of invested assets.
Also called a portfolio manager and money manager, the individual who manages a
Investment product line (IPML)
The line of required returns for investment projects as a function of beta
Investment tax credit
Proportion of new capital investment that can be used to reduce a company's tax bill
A closed-end fund regulated by the investment Company Act of 1940. These funds have a
As a discipline, the study of financial securities, such as stocks and bonds, from the investor's
investments that a regulated entity is permitted to make under the rules and regulations
A loan secured by the collateral of some specified real estate property which obliges the borrower
A bond in which the issuer has granted the bondholders a lien against the pledged assets.
A modification of standard duration to account for the impact on duration of MBSs of
Mortgage pass-through security
Also called a passthrough, a security created when one or more mortgage
The period from the taking of applications from prospective mortgage borrowers to the
The risk associated with taking applications from prospective mortgage borrowers
The interest rate on a mortgage loan.
Mortgage-Backed Securities Clearing Corporation
A wholly owned subsidiary of the Midwest Stock
Securities backed by a pool of mortgage loans.
The lender of a loan secured by property.
The borrower of a loan secured by property.
Mutually exclusive investment decisions
investment decisions in which the acceptance of a project
Gross, or total, investment minus depreciation.
Net present value of future investments
The present value of the total sum of NPVs expected to result from
mortgage against which additional debts may be issued. Related: closed-end mortgage.
Passive investment strategy
See: passive management.
Passive investment management
Buying a well-diversified portfolio to represent a broad-based market
RAMs (Reverse-annuity mortgages)
mortgages in which the bank makes a loan for an amount equal to a
Identifiable assets, such as buildings, equipment, patents, and trademarks, as distinguished from a
Wealth that can be represented in financial terms, such as savings account balances, financial
Real cash flow
A cash flow is expressed in real terms if the current, or date 0, purchasing power of the cash
Real exchange rates
Exchange rates that have been adjusted for the inflation differential between two countries.
Real interest rate
The rate of interest excluding the effect of inflation; that is, the rate that is earned in terms
The bid and offer prices at which a dealer could do "size." Quotes in the brokers market may
A real time stock or bond quote is one that states a security's most recent offer to sell or bid (buy).
Realized compound yield
Yield assuming that coupon payments are invested at the going market interest
The return that is actually earned over a given time period.
The rate at which an investor assumes interest payments made on a debt security can be
The risk that proceeds received in the future will have to be reinvested at a lower potential
REIT (real estate investment trust)
real estate investment trust, which is similar to a closed-end mutual
Return on investment (ROI)
Generally, book income as a proportion of net book value.
Short-term investment services
Services that assist firms in making short-term investments.
Strip mortgage participation certificate (strip PC)
Ownership interests in specified mortgages purchased
Stripped mortgage-backed securities (SMBSs)
Securities that redistribute the cash flows from the
The mirror image of the asset substitution problem, wherein stockholders refuse
Unit investment trust
Money invested in a portfolio whose composition is fixed for the life of the fund.
Wholesale mortgage banking
The purchasing of loans originated by others, with the servicing rights
A portfolio of zero net value established by buying and shorting component
RETURN ON INVESTMENT (ROI)
In its most basic form, the rate of return equals net income divided by the amount of money invested. It can be applied to a particular product or piece of equipment, or to a business as a whole.
A division or unit of an organization that is responsible for achieving an adequate return on
Return on investment (ROI)
The net profit after tax as a percentage of the shareholdersâ€™ investment in the business.
capital investment analysis
Refers to various techniques and procedures
return on investment (ROI)
A very general concept that refers to some
The commitment of funds (capital) in anticipation of an increased
Real Interest Rate
The rate of interest paid on an investment adjusted for inflation
approximated net realizable value at split-off allocation
a method of allocating joint cost to joint products using a
a responsibility center in which the manager
a judgment about which assets will be
net realizable value approach
a method of accounting for by-products or scrap that requires that the net realizable value of these products be treated as a reduction in the cost of the primary products; primary product cost may be reduced by decreasing either
net realizable value at split-off allocation
a method of allocating joint cost to joint products that uses, as the proration base, sales value at split-off minus all costs necessary
the process of gathering information
real microprofit center
a center whose output has a market value
realized value approach
a method of accounting for byproducts or scrap that does not recognize any value for these products until they are sold; the value recognized
an assumption made about the rates of return that will be earned by intermediate cash flows from a capital project; NPV and PI assume reinvestment at the discount rate; IRR assumes reinvestment at the IRR
return on investment
a ratio that relates income generated
Net realizeable value
The expected revenue to be gained from the sale of an item or
Bonds rated Baa or above by Moodyâ€™s or BBB or above by Standard & Poorâ€™s.
Assets used to produce goods and services.
real interest rate
Rate at which the purchasing power of an investment increases.
Options embedded in real assets.
real value of $1
Purchasing powerâ€“adjusted value of a dollar.
Exchange Rate, Real
The nominal exchange rate corrected for price level differences.
Interest Rate, Real
Nominal interest rate less expected inflation.
Middleman between a corporation issuing new securities and the public. The middleman buys the securities issue outright and then resells it to customers. Also called an underwriter.
Expenditures on capital goods including new housing. Financial ''investments" and sales of existing assets are not included.
Investment Tax Credit
A reduction in taxes offered to firms to induce them to increase investment spending.
investment spending minus depreciation.
Measured in base year, or constant, dollars. Contrast with nominal.
Real Business Cycle Theory
Belief that business cycles arise from real shocks to the economy, such as technology advances and natural resource discoveries, and have little to do with monetary policy.
Real Exchange Rate
Exchange rate adjusted for relative price levels.
GDP expressed in base-year dollars, calculated by dividing nominal GDP by a price index.
Income expressed in base-year dollars, calculated by dividing nominal income by a price index.
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