Coinsurance Effect Effect of reducing the possibility of default by borrowing companies caused by merger of the two companies. … [Read more...]
Collar
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Collar Maximum and minimum limit that apply on the floating-rate note’s interest rate. … [Read more...]
Collateral
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Collateral Assets that are used as security and that can be claimed by the lender in case of default by borrower. … [Read more...]
Collateral Trust Bonds
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Collateral Trust Bonds Compare mortgage bond. Bonds wherein the investors have a claim on stocks, bonds, notes, and other financial assets that are used as security. … [Read more...]
Collateralized Mortgage Obligation (CMO)
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Collateralized Mortgage Obligation (CMO) Refer: mortgage pass-through security. Securities that are backed by a pass through pool, which encompasses classes of bondholders, maturities being different. The underlying security pool’s principal payments go toward repaying the bond on … [Read more...]
Collection Float
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Collection Float Negative float created because of the time gap between the deposit of a check and the actual time when the funds become available for use. … [Read more...]
Collection Fractions
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Collection Fractions The percentage of a given month's sales collected during the month of sale and each month following the month of sale. … [Read more...]
Collection Policy
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Collection Policy Action taken and procedures followed in collection of accounts receivables by firms. … [Read more...]
Collective Bargaining
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Collective Bargaining Negotiation of the employment between an employer and worker group. May encompass aspects such as terms of employment, work conditions and other related rules, salary, overtime pay etc. … [Read more...]
Collective Wisdom
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Collective Wisdom Grouping of all available individual opinions about the value of a stock or security. … [Read more...]
Comanager
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Comanager Term used with international bond issues or syndicated Eurocredit. Banks ranking below the lead managers who normally aid the lead manger bank with the pricing and processes pertaining to the instrument’s issue. … [Read more...]
Combination Matching
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Combination Matching Also termed horizon matching. Variant of cash flow matching and multi-period immunization wherein a constantly duration matched portfolio is built and over the initial years it is cash matched. … [Read more...]
Combination Strategy
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Combination Strategy Refer: Straddle. Strategy wherein puts and calls with same strike price and expiry date are either sold or bought simultaneously. … [Read more...]
Commercial Draft
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Commercial Draft Demand for payment made by bank on behalf of someone. … [Read more...]
Commercial Paper
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Commercial Paper Unsecured promissory notes, issued by a corporation, that have short term maturity. A CP normally matures before 270 days with 30 to 50 day terms being the most common maturity range. … [Read more...]
Commercial Risk
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Commercial Risk Risk arising from a possibility that an overseas borrower will not fulfill repayment commitments owing to bankruptcy or other business events. … [Read more...]
Commercial Trader
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Commercial Trader CFTC classification that describes traders who use futures markets primarily to carry out hedging transactions. … [Read more...]
Commission
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Commission Also termed round-turn. A charge/ fee charged by the broker to carry out trades. The fee normally depends on the number and dollar value of bonds, shares, options transacted. The deregulation in 1975, opened up the market discount brokers who do not offer advice like full … [Read more...]
Commission Broker
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Commission Broker Brokers functioning within specific exchanges working on behalf of a specific brokerage house and transacting with stocks for commissions. … [Read more...]
Commitment
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Commitment Refer: Open interest. Refers to the obligation undertaken by a futures contract trader to make or take delivery. … [Read more...]
