maturity

Tag: maturity

Treasury Inflation Protected Securities

Treasury Inflation Protected Securities Treasury Inflation Protected Securities or TIPS for short are debt instruments that are issued by the U.S. government. TIPS are indexed with the Consumer Price Index (CPI), and adjust accordingly to the inflation rate presented in the CPI. Treasury Inflation-Protected Securities (TIPS) Explained Treasury TIPS means that the security will adjust

Read More

Maturity Date Defined

See Also: Coupon Rate Bond Covenant Definition of a Bond Contract Long Term Debt Non-Investment Grade Bonds Par Value of a Bond Maturity Date Defined In finance, maturity date defined is the date on which a debt instrument is due. For example, when a bond reaches maturity, the issuer must pay the bondholder the principle

Read More

Currency Swap

See Also: Currency Exchange Rates Transaction Exposure Exchange Traded Funds Translation Exposure Hedge Funds Currency Swap Definition Currency swaps are used to manage exchange rate risk. In a currency swap, two counterparties exchange the interest and principal payments on loans in different currencies. The counterparties agree to a set exchange rate, a set maturity, and a

Read More

Credit Life Insurance

See Also: Employee Health Insurance Plan Third Party Insurance Personal Credit for Commercial Loan How to avoid additional insurance premiums Insulate Your Company from Rising Health Insurance Costs Credit Life Insurance Definition Individuals use credit life insurance policies to cover the outstanding debt on a loan. As the loan decreases, so does the plan until

Read More

Coupon Rate Bond

See Also: Common Stock Company Valuation Convertible Debt Instrument Covenant Definition of a Bond Contract Long Term Debt Non-Investment Grade Bonds Owner’s Equity Par Value of a Bond Preferred Stocks Coupon Rate Bond The coupon rate bond is the annual interest rate the issuer pays to the bondholder. The rate is expressed as a percentage of the bond’s face

Read More

Company Life Cycle

See Also: Dispersion Capitalization Market Positioning Limited Partnership Mergers and Acquisitions Product Life Cycle Company Life Cycle Definition Broadly speaking, companies progress through a predictable series of phases called the company life cycle. The life cycle starts with the startup phase, moves into the rapid growth phase, followed by the maturity phase, and finally the

Read More

Commercial Paper

See Also: Convertible Debt Instrument NonInvestment Grade Bonds Collateralized Debt Obligations External Sources of Cash Certificate of Deposit (CD) What Your Banker Wants You To Know Commercial Bank Convertible Debt Instrument Commercial Paper Definition Commercial paper is a short-term debt instrument. Companies can borrow money by issuing it to investors. It is unsecured, meaning collateral

Read More

Certificate of Deposit (CD)

See Also: Loan Term Commercial Paper Term Deposit Treasury Bills (t bills) Federal Funds Rate Definition Certificate of Deposit (CD) Definition A Certificate of Deposit or CD is a special type of time deposit used by many financial institutions, usually a commercial bank. Certificates of deposit generally offer fixed rates of return for periods of

Read More

Backwardation Definition

See Also: Contango Interest Rate Efficient Market Theory Market Dynamics Arbitrage Backwardation Definition Backwardation is a term used to describe a commodities market when the spot rates are higher than the future price of that certain commodity. In other words there is a downward sloping forward curve relative to the spot rate set for maturity

Read More