Coupon Interest payment paid periodically to bondholders until the maturity date. … [Read more...]
Coupon Equivalent Yield
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Coupon Equivalent Yield Actual/ true cost of interest represented as a 365-day year cost. … [Read more...]
Coupon Rate
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Coupon Rate Stated or advertised interest rate on notes, bonds, notes and other fixed income securities. It is normally paid twice yearly. … [Read more...]
Covariance
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Covariance Measure used in statistical analysis to evaluate the extent of matching movements as seen in random variables. … [Read more...]
Covenants
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Covenants Stipulations (affirmative or negative) outlined in bond indentures or preferred stock agreements that describe certain specific actions that must be taken by the issuer or others that must not be taken by the issuer. … [Read more...]
Covenant-Lite Loans
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Covenant-Lite Loans Loan with limited restrictions on the borrower’s debt-service capabilities. The debt is issued with fewer restrictions on payment terms, collateral and income levels. … [Read more...]
Cover
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Cover Buying a contract to balance/ offset an existing short position on a commodity/ instrument. … [Read more...]
Coverage Ratios
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Coverage Ratios A ratio that is used to evaluate the sufficiency of cash flows arising from earnings to meet debt/ lease dues. The fixed charge coverage ratio and interest coverage ratio are included. … [Read more...]
Covered Call
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Covered Call A short call option position in which the writer owns the number of shares of the underlying stock represented by the option contracts. Covered calls generally limit the risk the writer takes because the stock does not have to be bought at the market price, if the … [Read more...]
Covered Call Writing Strategy
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Covered Call Writing Strategy Refer: covered/ hedge option strategy. Investment strategy that encompasses writing call options on securities owned by the investor. … [Read more...]
Covered Interest Arbitrage
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Covered Interest Arbitrage Hedge strategy used by portfolio manager by investing dollars in a foreign currency denominated instrument and hedging the foreign exchange risk with a sale (for dollars) of the proceeds generated by the investment forward. … [Read more...]
Covered or Hedge Option Strategies
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Covered or Hedge Option Strategies Refer: naked strategies. An investment strategy that involves taking a position in the option and the underlying stock, to balance unfavorable price movement in one with gains in the other. … [Read more...]
Covered Put
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Covered Put Position in a put option where writer of the option also has a short position on the stock. Else the writer may have deposited cash or equivalents matching the option exercise into a cash account. This restricts the risk of the option writer. If option holder exercises … [Read more...]
Cramdown
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Cramdown Bankruptcy court’s powers to confirm a reorganization program in spite of objections arising from creditors of some classes. … [Read more...]
Crawling Peg
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Crawling Peg Exchange rate revision system that is automatic and works by setting a par value and a given percent within which limits the rate can fluctuate. Regular revision of the par value take place by authorities in accordance with their formula. … [Read more...]
Credible Signal
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Credible Signal Indicator or signal that gives accurate information, and can differentiate among originators. … [Read more...]
Credit Analysis
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Credit Analysis Refer: default risk. Assessment of a company or bond issue to determine the capacity of the issuer to fulfill all payment obligations by analyzing all available information pertaining to it. … [Read more...]
Credit Enhancement
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Credit Enhancement Buying an established insurance company’s financial guarantee for the purpose of raising cash. … [Read more...]
