Outward Arbitrage Arbitrage that arises from depositing bank’s local currency funds into Euro banks. The interbank market interest rate is higher and this difference allows an arbitrage opportunity for the bank. Random Finance Terms for the Letter O Out Trade Outright … [Read more...]
Overbought/Oversold Indicator
Filed Under: o by
Overbought/Oversold Indicator Tool to measure the point during trades where prices have fluctuated too fast and too far either up or down. A reaction is imminent in such a situation. Random Finance Terms for the Letter O Out Trade Outright Rate Outsourcing Outstanding … [Read more...]
Overfunded Pension Plan
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Overfunded Pension Plan When assets exceed plan liabilities in a pension plan. The plan is said to have a positive surplus. Random Finance Terms for the Letter O Out Trade Outright Rate Outsourcing Outstanding Share Capital Outstanding Shares Outward … [Read more...]
Overlapping
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Overlapping Political entity debt that coincides or overlaps with another. For example, state tax overlapping with tax in force in cities within. Random Finance Terms for the Letter O Out Trade Outright Rate Outsourcing Outstanding Share Capital Outstanding … [Read more...]
Overlay Strategy
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Overlay Strategy Pensions sponsors use this strategy to minimize the disruption of the money managers’ activities by using futures for allocation of assets. Random Finance Terms for the Letter O Out Trade Outright Rate Outsourcing Outstanding Share Capital Outstanding … [Read more...]
Overnight Delivery Risk
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Overnight Delivery Risk Risk arising from difference in time zones because settlement centers are located in different places. Situations may arise where delivery or payment has to be carried out without accurate knowledge of whether funds have been credited into the account at the … [Read more...]
Overnight Repo
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Overnight Repo A single day repurchase agreemen Random Finance Terms for the Letter O Overreaction Hypothesis Overseas Private Investment Corporation (OPIC) Overshooting Oversubscribed Issue Oversubscription Privilege Over-the-Counter Market … [Read more...]
Overperform
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Overperform The performance of a security when it is expected to do better than the market. Random Finance Terms for the Letter O Overreaction Hypothesis Overseas Private Investment Corporation (OPIC) Overshooting Oversubscribed Issue Oversubscription … [Read more...]
Overreaction Hypothesis
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Overreaction Hypothesis Theory that exaggerated price fluctuations occur because investors react out of proportion to unexpected information and news. Subsequent price corrections occur in the market. Random Finance Terms for the Letter O Overreaction Hypothesis Overseas … [Read more...]
Overseas Private Investment Corporation (OPIC)
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Overseas Private Investment Corporation (OPIC) Agency of U.S. Government set up to aid businesses interested in overseas investments. Offers risk analysis and management services to enable domestic business growth in foreign markets. Random Finance Terms for the Letter … [Read more...]
Overshooting
Filed Under: o by
Overshooting Reflection of an increased prepayment rate as soon as an MBS crosses the refinance threshold. Most commonly occurs when the WAC of underlying debt security pool has not crossed refinancing limitations for two or three years following the date of issue. Random … [Read more...]
P&L
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P&L Stands for profit and loss statement. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]
P2P
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P2P In finance, denotes path to profitability. Strategy or approach followed by new business to transform into a profit making concern. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]
P/E
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P/E Refer: Price/Earnings ratio. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]
P/E Ratio
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P/E Ratio Stands for price per share divided by annual earnings for each share. Measures fair stock valuation in market. A share selling at $10 and earning $2 over a year has a value equal to 5 times as much as it earns. Random Finance Terms for the Letter … [Read more...]
P/E Effect
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P/E Effect Effect where portfolio with stocks showing low P/E ratios display higher returns (after adjusting for risk) than those having high P/E ratio. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]
PSA
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PSA Used to manage risk inherent in prepayment. Assumes increase in prepayments with a cap at 30 months. Helps assess speed of prepayment in new loans. 0.2% is the standard increase amount denoting a 2% increase in rate every month until the 30th month. Random Finance Terms … [Read more...]
Pairoff
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Pairoff Repurchase or buy back to set off or cancel, in effect, a previous sale of securities. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]
Paper
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Paper Instruments available in the money market such as commercial paper. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]
Paper Gain (Loss)
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Paper Gain (Loss) Difference between market price and cost of acquisition of securities in portfolio that translates into unrealized capital gains. Random Finance Terms for the Letter P Paper Gain (Loss) Par Value Parallel Loan Parallel Shift in the Yield … [Read more...]
