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Default premium
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Default premiumA differential in promised yield that compensates the investor for the risk inherent in purchasing a corporate bond that entails some risk of default.
RELATED TERMS--------------------------------------
Differential
A small charge added to the purchase price and subtracted from the selling price by the dealer for odd-lot quantities.
Yield
The rate of income an investor receives from a security; to produce or provide income.
Investor
Investor is a top Swedish corporation in the field of diversified financials, and its estimated market value is 10,680 million US dollars.
Risk
The possibility of loss; the amount that one may lose when investing.
Bond
Certificate, stating that the issuer is committing himself to repay the loan, including interest and other payments, to the holder.
Default
1) The failure to make timely payment of interest or principal on a debt security or to otherwise comply with the provisions of a bond indenture. 2) In context of project financing, a technical default signals a project parameter is outside defined or agreed limits or a legal matter is not yet resolved.
SIMILAR TERMS--------------------------------------
Default
1) The failure to make timely payment of interest or principal on a debt security or to otherwise comply with the provisions of a bond indenture. 2) In context of project financing, a technical default signals a project parameter is outside defined or agreed limits or a legal matter is not yet resolved.
Default interest
A higher interest rate payable after default.
Default risk
The risk that an issuer of a bond may be unable to make timely principal and interest payments. Also referred to as credit risk (as gauged by commercial rating companies).
PREVIOUS AND NEXT TERMS--------------------------------------
Deep discount bond
A bond issued with a very low coupon or no coupon that sells at a price far below par value. A bond that has no coupon is called a zero-coupon bond.
Deep in the money
A call option with an exercise price substantially below the underlying stock's market price. Also put option with an exercise price substantially above the underlying stock's market price.
Deep out of the money
A call option with an exercise price substantially above the market price. Also put option with an exercise price substantially below the underlying stock's market price.
Default
1) The failure to make timely payment of interest or principal on a debt security or to otherwise comply with the provisions of a bond indenture. 2) In context of project financing, a technical default signals a project parameter is outside defined or agreed limits or a legal matter is not yet resolved.
Default interest
A higher interest rate payable after default.
Default premium
Default risk
The risk that an issuer of a bond may be unable to make timely principal and interest payments. Also referred to as credit risk (as gauged by commercial rating companies).
Defeasance
1) The setting aside by a borrower of cash or bonds sufficient to service the borrower's debt. 2) In securities trading, where a clearing house becomes counterparty to each side of a trade, after the trade has been agreed.
Defensive securities
Low-risk stocks or bonds that will provide a predictable and safe return on an investor's money.
Deferred account
A type of account that delays taxes on that account until some later date. An example is an IRA account.
Deferred annuities
Tax-advantaged life insurance products. Deferred annuities offer deferral of taxes with the option of withdrawing one's funds in the form of a life annuity.
RELATED TERMS--------------------------------------
Differential
A small charge added to the purchase price and subtracted from the selling price by the dealer for odd-lot quantities.
Yield
The rate of income an investor receives from a security; to produce or provide income.
Investor
Investor is a top Swedish corporation in the field of diversified financials, and its estimated market value is 10,680 million US dollars.
Risk
The possibility of loss; the amount that one may lose when investing.
Bond
Certificate, stating that the issuer is committing himself to repay the loan, including interest and other payments, to the holder.
Default
1) The failure to make timely payment of interest or principal on a debt security or to otherwise comply with the provisions of a bond indenture. 2) In context of project financing, a technical default signals a project parameter is outside defined or agreed limits or a legal matter is not yet resolved.
SIMILAR TERMS--------------------------------------
Default
1) The failure to make timely payment of interest or principal on a debt security or to otherwise comply with the provisions of a bond indenture. 2) In context of project financing, a technical default signals a project parameter is outside defined or agreed limits or a legal matter is not yet resolved.
Default interest
A higher interest rate payable after default.
Default risk
The risk that an issuer of a bond may be unable to make timely principal and interest payments. Also referred to as credit risk (as gauged by commercial rating companies).
PREVIOUS AND NEXT TERMS--------------------------------------
Deep discount bond
A bond issued with a very low coupon or no coupon that sells at a price far below par value. A bond that has no coupon is called a zero-coupon bond.
Deep in the money
A call option with an exercise price substantially below the underlying stock's market price. Also put option with an exercise price substantially above the underlying stock's market price.
Deep out of the money
A call option with an exercise price substantially above the market price. Also put option with an exercise price substantially below the underlying stock's market price.
Default
1) The failure to make timely payment of interest or principal on a debt security or to otherwise comply with the provisions of a bond indenture. 2) In context of project financing, a technical default signals a project parameter is outside defined or agreed limits or a legal matter is not yet resolved.
Default interest
A higher interest rate payable after default.
Default premium
Default risk
The risk that an issuer of a bond may be unable to make timely principal and interest payments. Also referred to as credit risk (as gauged by commercial rating companies).
Defeasance
1) The setting aside by a borrower of cash or bonds sufficient to service the borrower's debt. 2) In securities trading, where a clearing house becomes counterparty to each side of a trade, after the trade has been agreed.
Defensive securities
Low-risk stocks or bonds that will provide a predictable and safe return on an investor's money.
Deferred account
A type of account that delays taxes on that account until some later date. An example is an IRA account.
Deferred annuities
Tax-advantaged life insurance products. Deferred annuities offer deferral of taxes with the option of withdrawing one's funds in the form of a life annuity.
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This dictionary contains 24549 terms.
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