Near Term A term used to signify short term. … [Read more...]
Nearby
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Nearby Also see: deferred futures. Most recent month when active trading took place in commodity futures market or financial market. … [Read more...]
Nearby Futures Contract
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Nearby Futures Contract Contract with nearest settlement date when many futures contracts are compared. Any contract that settles immediately after this one is the next and so on with the contract settling farthest in time being called the most distant futures contract. Used to … [Read more...]
Negative Amortization
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Negative Amortization When principal due in a loan increases with time instead of decreasing or amortizing, it is termed negative amortization. May happen when monthly repayments do not adequately cover the entire amount needed to reduce principal balance. The outstanding principal … [Read more...]
Negative Butterfly
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Negative Butterfly Shift in yield that is not parallel. Short and long-term yields fall to a greater extent than other maturity rates. … [Read more...]
Negative Carry
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Negative Carry Also see: net financing cost. Cost of a position on an investment where its cost of carry is higher than income currently derived from it. … [Read more...]
Negative Convexity
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Negative Convexity Phenomenon found in bond securities that increase in price is high when yield improves but price does not fall to the same degree when yield declines. … [Read more...]
Negative Covenant
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Negative Covenant Stipulation or covenant with a bond that restricts the issuer from specific actions without approval from bond holders. … [Read more...]
Negative Duration
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Negative Duration When price of mortgage backed security (MBS) moves in line with interest rates. … [Read more...]
Negative Growth
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Negative Growth Phenomenon where country’s economy contracts. Denoted by falling GDP in any quarter of the year. … [Read more...]
Neglected Firm Effect
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Neglected Firm Effect Phenomenon that firms that do not draw enough attention from analysts fail to perform better than those firms that get attention from such analysts. … [Read more...]
Negotiated Certificate of Deposit
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Negotiated Certificate of Deposit Certificate of Deposit that cannot be cashed before maturity date but can be sold. Usually, come with large-denominations, for example a $1MM CD. … [Read more...]
Negotiated Markets
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Negotiated Markets Marketplace where every transaction is an individual deal negotiated from scratch between the two parties. … [Read more...]
Negotiated Offering
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Negotiated Offering Securities being offered with terms established by negotiation between underwriters and issuers. The terms include the underwriter compensation to be paid. … [Read more...]
Negotiated Sale
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Negotiated Sale Sale transaction where the terms are established by mutual understanding between underwriter and issuer instead of being set by underwriters bidding competitively in the market. … [Read more...]
Negotiated Underwriting
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Negotiated Underwriting Process where sale and purchase price of new issues are negotiated between investor and the underwriter. … [Read more...]
Negotiable Order of Withdrawal (NOW)
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Negotiable Order of Withdrawal (NOW) Deposits on demand that yield an interest payment to holder. … [Read more...]
Net Adjusted Present Value
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Net Adjusted Present Value Present value (after adjustment) less the costs incurred in an investment initially. … [Read more...]
Net Advantage of Refunding
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Net Advantage of Refunding Savings accruing from a refund when expressed in NPV terms. … [Read more...]
Net Advantage to Leasing
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Net Advantage to Leasing NPV of undertaking or initiating a lease finance instead of getting the required funds in the form of a loan or undertaking an asset purchase. … [Read more...]
