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Glossary of financial terms - Letter C

  • CA

    Tags:  corporate actions financial instruments

    See  


  • CAC

    Tags:  events finance (general)

    See  


  • CAC40

    Tags:  indices stock markets

    Share index of the Paris stock exchange. It is calculated on a basket of 40 values selected for their representativity in terms of industry sectors.

     


  • CAC40 index future

    Tag:  equity derivatives

    Futures contract on the French benchmark stock market index,

    . CAC40 index futures are listed on NYSE Euronext Paris.

     


  • CAD

    Tags:  regulation texts of law

    See  


  • CADS

    Tags:  corporate finance financial analysis

    See  


  • CAGR

    Tags:  investments metric valuation and pricing

    See  


  • CAJWG

    Tags:  organisations or institutions post-negotiation

    See  


  • CAL

    Tags:  concept investments

    See  


  • calculation agent

    Tags:  interest rate instruments security issuance

    An agent appointed by the issuer of a security to process and disseminate coupon rate fixing or redemption information and to determine any amount payable under the securities.

     


  • calendar spread

    Tags:  market transactions strategies

    (1) The purchase of one delivery month of a given futures contract and simultaneous sale of a different delivery month of the same futures contract.
    (2) The purchase of a put or a call option and the simultaneous sale of the same type of option on the same underlying and typically with the same strike price, but with a different expiry.

     


  • call

    Tags:  options typology

    See  


  • callable bond

    Tags:  bonds typology

    A bond which the issuer has the right to buy back at a specific date if he wishes.

     


  • callable swap

    Tags:  financial instruments interest rate derivatives

    The buyer of a callable swap earns the right to terminate the swap on specific dates in the future, usually on each settlement date.

     


  • call option

    Tags:  options typology

    A financial option which gives its owner the right, but not the obligation, to buy a fixed amount or quantity of the underlying asset at a specific price (strike) and at (European style) or over (American style) a given time.

     


  • call protection

    Tags:  bonds characteristics

    Call protection is a period at the beginning of the life of a callable bond during which the bond holder is protected from the issuer exercising the option of early redemption.

     


  • Canada Revenue Agency (CRA)

    Tags:  economy government agencies

    The Canada Revenue Agency is a federal agency that administers tax laws for the Government of Canada and most provinces and territories as well as social and economic benefit and incentive programs delivered through the tax system.

     


  • Canada Savings Bond (CSB)

    Tags:  bonds typology

    Canada Savings Bonds were debentures offered by the Government of Canada between the years 1945 and 2017.

     


  • Canary option

    Tags:  options typology

    This term refers to the exercise style of an option where the option holder can exercise the option at quarterly dates, but not before a determined time period has elapsed.

     


  • cancellable swap

    Tags:  financial instruments interest rate derivatives

    See  


  • cap

    Tags:  financial instruments interest rate derivatives

    An interest rate cap is an over-the-counter contract between two counterparties which allows its buyer to protect himself against a rise in interest rates exceeding a certain predetermined level against the payment of a premium.

     


  • Capital Adequacy Directive (CAD)

    Tags:  regulation texts of law

    The Capital Adequacy Directive was a European directive the purpose of which was to harmonise capital requirements for banking firms and non-bank securities firms.

     


  • capital allocation line (CAL)

    Tags:  investments metric risk management

    The capital allocation line is a curve plotted on a graph of all possible combinations of risk-free and risky assets.It shows the return to be made by taking on a certain level of risk.

     


  • capital asset pricing model (CAPM)

    Tags:  investments methodology valuation and pricing

    The capital asset pricing model is a model used to determine the appropriate rate of return for a risky asset given its inherent level of risk.

     


  • capital gain

    Tags:  investments valuation and pricing

    The positive difference between the price at which a financial instrument or product is acquired and the price at which it is sold.

     


  • capital loss

    Tags:  investments valuation and pricing

    The negative difference between the price at which a financial instrument or product is acquired and the price at which it is sold.

     


  • capital market

    Tags:  finance (general) financial markets

    A market for the exchange of financial assets such as bonds, notes and equities, typically with maturities greater than one year.

     


  • capital market line (CML)

    Tags:  investments valuation and pricing

    The capital market line is a graph that shows the expected returns of each possible allocation between the completely diversified market portfolio and a risk-free asset that an investor could make.

     


  • capital protected credit-linked note

    Tags:  credit derivatives financial instruments

    A credit-linked note where the principal is partly or fully guaranteed to be repaid at maturity.

     


  • CAPM

    Tags:  investments methodology valuation and pricing

    See  


  • capped-style option

    Tags:  options typology

    A capped-style option is a conventional option with a pre-defined profit cap written into the contract. It is automatically exercised when the underlying security closes at a price making the option's mark to market match the specified amount.

     


  • capped FRN

    Tags:  interest rate instruments typology

    A capped FRN is a

    with a ceiling on the maximum interest payable.

     


  • caption

    Tags:  derivatives financial instruments

    A caption is an option on a

    .

     


  • cash and carry arbitrage

    Tags:  market transactions strategies

    A cash and carry arbitrage is a strategy in the financial markets where a price difference between an instrument's cash price and its term price is being used to realize a risk-free profit.

     


  • Cash Available for Debt Service (CADS)

    Tags:  corporate finance financial analysis metric

    See  


  • cash conversion cycle (CCC)

    Tags:  financial analysis metric

    The cash conversion cycle measures the time between a company's purchase of inventory and the receipt of cash from accounts receivable.

     


  • cash flow

    Tag:  finance (general)

    The term cash flow describes any form of movement of cash or cash-equivalent.

     


  • cash flow analysis

    Tags:  concept financial analysis

    Cash flow analysis is a financial analysis tool which consists of getting to understand a company's past and present cash flows in order to draw conclusions with regards to the company's current valuation, its future revenue and cash flows as well as potential future capital requirements.

     


  • Cash Flow Available for Debt Service (CFADS)

    Tags:  corporate finance financial analysis metric

    CFADS is a ratio that measures how much cash a company has available for debt interest and principal repayments.

     


  • cash pooling

    Tags:  concept corporate finance

    Cash pooling is a cash management technique offered by banks to its corporate clients. It consists of grouping together the balances of different accounts of the company, or even of different legal entities, and treating them collectively in order to optimise the amount of interest paid or received by the client.

     


  • cash settlement

    Tags:  derivatives transaction settlement

    Method of settlement for a derivative contract where cash is transferred on settlement instead of delivery of the contract's actual underlying.

     


  • CB

    Tags:  central banks organisations or institutions

    See  


  • CB

    Tags:  bonds typology

    See  


  • CBO

    Tags:  financial instruments securitisation

    See  


  • CBOE

    Tags:  financial markets regulated markets

    Country:   United States of America

    See  


  • CBOT

    Tags:  financial markets regulated markets

    Country:   United States of America

    See  


  • CC

    Tags:  concept means of payment

    See  


  • CCBM

    Tags:  concept financial system

    See  


  • CCC

    Tags:  financial analysis metric

    See  


  • CCD

    Tags:  financial instruments typology

    Country:   India

    See  


  • CCO

    Tags:  economy status

    See  


  • CCY

    Tags:  concept finance (general)

    See  


  • CD

    Tag:  money market instruments

    See  


  • CDO

    Tags:  financial instruments securitisation

    See  


  • CDO-Squared

    Tags:  financial instruments securitisation

    See  


  • CDS

    Tags:  credit derivatives financial instruments

    See  


  • central bank

    Tags:  central banks financial system

    A central bank is an institution that manages a country's currency, its money supply and its interest rates.

     


  • central counterparty (CCP)

    Tags:  financial markets organisations or institutions

    A corporate entity which provides a guarantee to both parties in a financial transaction that, if one party defaulted before fulfilling its obligations, it would step in to fulfill the financial obligations to the remaining party as agreed at the time of the trade.

     


  • Central Facility for Funds (CFF)

    Tags:  asset management transaction settlement

    The Central Facility for Funds (CFF) is a post-trade infrastructure operated by Clearstream which is designed to provide greater efficiency and cost-effectiveness in the settlement and custody process for investment funds.

     


  • central securities depository (CSD)

    Tags:  organisations or institutions transaction settlement

    A central securities depository is an entity specialised in holding securities such as shares or bonds. Their clients are typically financial institutions such as custodian banks and brokers.

     


  • CEO

    Tags:  economy status

    See  


  • certificate of deposit

    Tags:  financial instruments money market instruments

    Certificates of Deposit are short-term debt instruments issued by banks in order to cover their financing needs. They generally take the form of discount securities, although other forms are possible, and have maturities which range from a couple of days to several months.

     


  • CESR

    Tags:  organisations or institutions supervision and regulation

    Territory:   European Union

    See  


  • CEY

    Tags:  bonds pricing and analysis

    See  


  • CFADS

    Tags:  corporate finance financial analysis

    See  


  • CFD

    Tags:  financial instruments stock markets

    See  


  • CFO

    Tags:  economy status

    See  


  • CFTC

    Tags:  organisations or institutions supervision and regulation

    Country:   United States of America

    See  


  • Chartered Certified Accountant (ACCA)

    Tags:  accounting status

    See  


  • Chartered Institute of Bankers (CIB)

    Tags:  financial markets professional associations

    Former name of

    .

     


  • cheapest

    Tags:  bonds valuation and pricing

    See  


  • cheapest to deliver (CTD)

    Tags:  bonds valuation and pricing

    The cheapest-to-deliver is the bond which, amongst all the deliverable bonds for a bond future, generates for the seller of futures in a cash and carry arbitrage the greatest profit or smallest loss.

     


  • Chicago Board of Trade (CBOT)

    Tags:  financial markets regulated markets

    The Chicago Board of Trade is a futures and options exchange where commodity and financial contracts are traded.

     


  • Chicago Board Options Exchange (CBOE)

    Tags:  financial markets regulated markets

    The Chicago Board Options Exchange is the largest options exchange in the United States. It was established in 1973 and offers options on company stocks, stock indices, and exchange-traded funds.

     


  • Chicago Mercantile Exchange (CME)

    Tags:  financial markets regulated markets

    The Chicago Mercantile Exchange is an American exchange for financial and commodity derivatives based in Chicago.

     


  • chief credit officer (CCO)

    Tags:  banking system status

    The chief credit officer is responsible for a bank's loan portfolio. Amongst other tasks he measures and manages the aggregate credit risk, defines the credit development strategy, monitors credit analysis and oversees the handling of problematic loans.

     


  • chief executive officer (CEO)

    Tags:  economy status

    The chief executive officer is the highest-ranking executive in a company. He is in charge of managing the company by making the important decisions, managing the company's operations and resources on a high level.

     


  • chief financial officer (CFO)

    Tags:  corporate finance economy status

    The chief financial officer of a company is accountable for managing the company's finances. That usually encompasses financial planning, financial risk management, funding, record-keeping and financial reporting.

     


  • chief information officer (CIO)

    Tags:  economy status

    Chief information officer is a job title given to the most senior executive who is in charge of helping a company reach its goals through technology.

     


  • chief risk officer (CRO)

    Tags:  economy status

    The chief risk officer of a company is an executive responsible for the identification, analysis and mitigation of significant risks, and related opportunities, to a business and its different segments.

     


  • chooser option

    Tags:  options typology

    A type of option where the option buyer chooses at a specific date whether the option is a call or a put. The strike and the maturity of a chooser option are predetermined and are usually the same for the call and the put.

     


  • CIO

    Tags:  economy status

    See  


  • class of options

    Tags:  options typology

    See  


  • clean price

    Tags:  bonds valuation and pricing

    The price of a bond excluding accrued interest.

     


  • clearing

    Tags:  market transactions transaction settlement

    Clearing is the process of guaranteeing transactions on financial markets from the moment they are executed to the moment of their settlement. It encompasses the establishing of positions, the calculation of net obligations, and ensuring the availability of financial instruments, cash, or both, to secure exposures resulting from those positions.

     


  • clearing house

    Tags:  organisations or institutions transaction settlement

    A clearing house operates as a central settlement agent for securities and derivatives operations in a regulated market. Amongst other roles they take on, clearing houses are counterparty in each trade closed in the market, thus eliminating counterparty risk and guaranteeing contractual fulfillment.

     


  • Clearing House Automated Payment System (CHAPS)

    Tags:  electronic systems payments

    The Clearing House Automated Payment System is a British payment system, which offers same-day fund transfers in British pounds.

     


  • clearing member (CM)

    Tags:  financial markets organisations or institutions status

    A clearing member is an exchange participant who is entitled to perform the clearing of securities, futures and options transactions.

     


  • cliquet option

    Tags:  options typology

    An option whose stike is reset at predetermined intervals and intrinsic value is locked in.

     


  • CLN

    Tag:  credit derivatives

    See  


  • CLO

    Tags:  financial instruments securitisation

    See  


  • close-out

    Tags:  market transactions transaction settlement

    The act of cancelling a position in the market by entering into a transaction on the same instrument but in the opposite direction. A long position is closed out by selling the instrument and vice versa.

     


  • close of business (COB)

    Tag:  financial markets

    See  


  • closing sale

    Tags:  market transactions options

    A sale of option contracts which offsets (closes) an existing long position.

     


  • CM

    Tags:  financial markets status

    See  


  • CME

    Tags:  financial markets regulated markets

    Country:   United States of America

    See  


  • CML

    Tags:  investments valuation and pricing

    See  


  • CMO

    Tags:  financial instruments securitisation

    See  


  • CMS

    Tags:  financial instruments interest rate derivatives

    See  


  • COB

    Tag:  financial markets

    See  


  • COBOL

    Tags:  information technology languages

    See  


  • collar (interest rate derivative)

    Tags:  financial instruments interest rate derivatives

    Over-the-counter interest rate derivative which protects its holder against interest rate movements outside of a certain range. The purchase of a collar consists of simultaneously buying an interest rate cap and selling an interest rate floor. The sale of a collar is realised by simultaneously selling the cap and buying the floor.

     


  • collateralised mortgage obligation (CMO)

    Tags:  financial instruments securitisation

    A collateralised mortgage obligation is a structured mortgage-backed security. It consists of several tranches where groups of mortgages are organised in function of their risk profile.

     


  • collateralized bond obligation (CBO)

    Tags:  financial instruments securitisation

    A collateralized bond obligation is a type of asset-backed security which uses a variety of high-yield or junk bonds as collateral.

     


  • collateralized debt obligation (CDO)

    Tags:  financial instruments securitisation

    A CDO is an asset-backed security backed by a diversified pool of debt securities.

     


  • Collateralized debt obligation squared (CDO-squared)

    Tags:  financial instruments securitisation

    A CDO-squared is an asset-backed backed by collateralised debt obligation (CDO) tranches.

     


  • collateralized loan obligation (CLO)

    Tags:  financial instruments securitisation

    A form of securitisation where loans are pooled together by a bank or other financial institution and sold to a special purpose vehicle (SPV). The SPV issues securities using the loans as a collateral.

     


  • collective action clause (CAC)

    Tags:  financial system regulation

    Standardised contractual elements, through which a majority of the holders of a bond can make certain changes to the terms of the bond, which are subsequently legally binding for all holders of the bond.

     


  • commercial paper

    Tags:  financial instruments money market instruments

    Commercial paper is an unsecured, short-term promissory note issued as an obligation of the issuing entity. It is issued at a discount and redeemed at its face value at maturity.

     


  • Commercial Paper Funding Facility (CPFF)

    Tags:  financial system mechanism

    The Commercial Paper Funding Facility was a system that existed in the United States between 2008 and 2010 as a consequence of the financial crisis of 2008 to improve liquidity in the short-term funding markets.

     


  • Committee of European Securities Regulators (CESR)

    Tags:  organisations or institutions supervision and regulation

    The Committee of European Securities Regulators was an independent committee of European Securities regulators, established by the European Commission in 2001. In 2011 it was replaced by the

    .

     


  • Committee on Payments and Market Infrastructures (CPMI)

    Tags:  organisations or institutions post-negotiation

    The Committee on Payments and Market Infrastructures is a committee that monitors developments in payment, settlement and clearing systems in an attempt to contribute to efficient payment and settlement systems globally and build strong market infrastructure.

     


  • Committee on Payments and Settlement Systems (CPSS)

    Tags:  organisations or institutions post-negotiation

    See  


  • Committee on Uniform Security Identification Procedures (CUSIP)

    Tags:  financial instruments instrument codes

    The CUSIP is a 9-character financial instruments code used exclusively in North America.

     


  • Commodity Futures Trading Commission (CFTC)

    Tags:  government agencies organisations or institutions supervision and regulation

    The Commodity Futures Trading Commission is American government agency that regulates futures and option markets in the United States.

     


  • Common Business Oriented Language (COBOL)

    Tags:  information technology languages

    COBOL is a compiled English-like programming language designed for business use. It is primarily used in business, finance, and administrative systems for companies and governments.

     


  • common code

    Tags:  financial instruments instrument codes

    Common codes are 9-digit security identification codes attributed by Euroclear and Clearstream.

     


  • Common Reporting Standard (CRS)

    Tags:  supervision and regulation texts of law

    The Common Reporting Standard (CRS), is a regulation developed by the OECD in 2014 in order to promote fiscal transparency, in particular through an automatic exchange of information between jurisdictions.

     


  • complementary currency

    Tags:  concept economy means of payment payments

    A complementary currency is a currency or other medium of exchange that is supplementing or complementing a national currency.

     


  • composite currency

    Tags:  concept economy

    Unit of account the value of which is fixed arbitrarily at its inception and then evolves as a weighted average of the variations of the national currencies of which it is composed.

     


  • compound annual growth rate (CAGR)

    Tags:  investments metric valuation and pricing

    The compound annual growth rate is the average annual growth rate of an investment over multiple time periods, assuming that the investment has been compounding over the whole duration.

     


  • compounding

    Tags:  concept time value of money

    Compounding is a process in financial mathematics where the future value for an amount or a series of cash flows is being calculated with intermediary interest payments being reinvested.

     


  • compounding interest

    Tags:  concept time value of money

    See  


  • compound interest

    Tags:  concept time value of money

    Term describing a method of interest calculation where interest payments from an investment are added to the principal and bear interest on their part. Thus, the amount of interest earned from the investment increases with each period.

     


  • compound value

    Tags:  concept time value of money

    See  


  • compulsory convertible debenture (CCD)

    Tags:  financial instruments typology

    A compulsory convertible debenture is a type of debt security which must be converted into equity by a specified time.

     


  • confidential disclosure agreement (CDA)

    Tag:  documents and publications

    See  


  • confidentiality agreement (CA)

    Tag:  documents and publications

    See  


  • conservatism principle

    Tags:  accounting concept

    The conservatism principle is a GAAP constraint which states that, when choosing between two solutions, the one which has the less favorable outcome is the solution which should be chosen.

     


  • consistency principle

    Tags:  accounting concept

    The consistency principle is a GAAP constraint which stipulates that the company needs to use the same accounting principles and methods from period to period.

     


  • consol

    Tags:  bonds typology

    See  


  • constant maturity swap (CMS)

    Tags:  financial instruments interest rate derivatives

    A constant maturity swap is made up of the exchange of two rates of which one leg is either fixed or based on a short term rate (often Euribor or Libor), and the other is based on a long-term swap rate reset every period.

     


  • consumer price index (CPI)

    Tags:  economy indicators metric

    A consumer price index is a measure of changes in the price level of a representative basket of consumer goods and services purchased by households.

     


  • contango

    Tags:  concept financial markets

    The term contango describes a market situation where forward prices for a certain product are higher than spot prices.

     


  • contract for difference (CFD)

    Tags:  derivatives financial instruments

    A contract for difference is a financial derivative in which the seller agrees to pay to the buyer the difference between the agreed fixed price of an asset and its market value at contract time. If the difference is negative, then the payment is made by the buyer to the seller.

     


  • conversion agent

    Tags:  financial instruments security issuance

    An agent appointed by the Issuer to instruct the execution of conversion or exchanges of securities.

     


  • conversion factor

    Tags:  bonds valuation and pricing

    Multiplicator used to neutralize differences in the characteristics in terms of coupon rate and maturity of the deliverable bonds for a futures contract.

     


  • conversion premium

    Tags:  bonds valuation and pricing

    The conversion premium in a

    reflects the additional cost over the parity that investors have to pay to purchase the convertible bond rather than equity.

     


  • conversion price

    Tags:  bonds valuation and pricing

    The conversion price is the price at which the isser grants the holder of a

    the right to purchase ordinary share. It is determined at the time of issuance of the convertible bond.

     


  • conversion ratio

    Tags:  bonds valuation and pricing

    The conversion ratio indicates the number of shares a

    holder would receive on exercising the right to convert the convertible bond into equity.

     


  • convertible asset swap

    Tags:  financial instruments interest rate derivatives

    A convertible asset swap is an

    where the underlying asset is a [TRM00980S]convertible bond[TRM00980S].

     


  • convertible bond

    Tags:  financial instruments interest rate instruments

    A convertible bond is a corporate

    which gives its holder an additional right to give up the bond in exchange for a fixed number of ordinary shares. At maturity, convertibles are worth either their cash redemption value or the market value of the shares into which they are convertible, whichever is the greater.

     


  • convexity

    Tags:  bonds valuation and pricing

    Convexity is a measure of a bond's sensitivity to interest rate variations. More accurately, it is a metric of the curvature of a bond's price-yield relationship.

     


  • corporate action

    Tags:  events financial instruments

    A corporate action is an event in the life of a security that in some way impacts a position in that security.

     


  • corporate bond

    Tags:  bonds typology

    Corporate bonds are debt obligations issued by private and public corporations.

     


  • correspondent central banking model (CCBM)

    Tags:  financial system monetary policy

    The correspondent central banking model was introduced by the Eurosystem in 1999 at the same time as the euro. Its main purpose is to ensure the availability of all marketable and non-marketable assets eligible for use in monetary policy operations or to obtain intraday credit in TARGET2, irrespective of where the assets or the counterparty are located.

     


  • cost constraint

    Tags:  accounting concept

    The cost constraint is a GAAP constraint which stipulates that the benefits of reporting financial information should justify and be greater than the costs imposed on supplying it.

     


  • cost of carry

    Tags:  market transactions valuation and pricing

    The cost of buying an asset today and carrying it through to a particular date.

     


  • counterparty risk

    Tags:  risk management typology

    Exposure to potential loss from a counterparty that cannot make good on its payments or obligations over the term of the contract.

     


  • coupon

    Tags:  bonds characteristics

    The coupon represents the interest which the issuer of a

    pays to the holder. It is expressed as a percentage of the nominal.

     


  • coupon equivalent yield (CEY)

    Tags:  bonds pricing and analysis

    See  


  • coupon stripping

    Tags:  bonds financial techniques

    Coupon stripping consists of taking a coupon bond and selling each of the coupons and the principal separately as zero-coupon bonds in their own right.

     


  • covered bond

    Tags:  securitisation typology

    Covered bonds are bonds backed by a loan portfolio and issued by a financial institution. In contrast to asset-backed securities, they remain on the issuer's balance sheet.

     


  • covered call

    Tags:  options strategies

    A covered call is an options strategy where an investor acquires (or already holds) a long position in a stock or other security and sells call options on the same asset.

     


  • covered option

    Tags:  options strategies

    A covered option is an option for which the seller holds an equivalent position of the underlying. In the case of a covered call, the underlying position will be long, whereas in the case of a covered put, the underlying position will be short.

     


  • covered put

    Tags:  options strategies

    A covered put is an options strategy where an investor acquires (or already holds) a short position in a stock or other security and sells put options on the same asset.

     


  • covered warrant

    Tags:  equity derivatives financial instruments

    A

    where the issuing bank has hedged itself by holding the underlying shares.

     


  • CP

    Tag:  money market instruments

    See  


  • CPFF

    Tags:  financial system mechanism

    Country:   United States of America

    See  


  • CPI

    Tags:  economy indicators

    See  


  • CPMI

    Tags:  organisations or institutions post-negotiation

    See  


  • CPSS

    Tags:  financial system organisations or institutions

    See  


  • CRA

    Tags:  economy government agencies

    Country:   Canada

    See  


  • credit-linked note (CLN)

    Tags:  credit derivatives financial instruments

    A Credit linked note (CLN) is a structured note that combines a debt asset and a credit derivative. It is a security typically issued from a Special Purpose Vehicle (SPV), with redemption and/or coupon payments linked to the occurrence of a credit event.

     


  • credit default swap (CDS)

    Tags:  credit derivatives financial instruments

    A credit default swap is a contract in which one party (the protection seller) agrees to receive periodic payments in return for making a contingent payment to the protection buyer, following a credit event (downgrade, default) on a specific security or loan.

     


  • credit derivative

    Tags:  credit derivatives financial instruments

    A derivative contract whose value changes with regard to changes in the credit risk of an underlying reference credit.

     


  • credit event

    Tags:  characteristics credit derivatives

    Term referring to factors such as missing a payment on a loan, breaches of bond or loan covenants, bankruptcy etc.

     


  • credit grade

    Tags:  metric risk management

    A credit grade is a measure of the credit risk a debt represents, such as it is perceived at a point in time by the rating agency which has attributed that grade.

     


  • credit risk

    Tags:  risk management typology

    Credit risk is the risk of suffering a loss due to a creditor's incapacity to meet his financial obligations.

     


  • credit spread

    Tags:  interest rate instruments valuation and pricing

    The difference between the yield on bonds of a particular class of credit rating and the benchmark government bond.

     


  • credit spread option

    Tags:  options typology

    Options on credit spreads, which allow investors to isolate credit risk from market risk and to express a view about an asset’s credit risk profile in the future.

     


  • credit support annex (CSA)

    Tags:  master agreements securities lending

    A legal document which regulates the management of collateral between the counterparties in a transaction in financial derivatives.

     


  • credit support vehicle (csv)

    Tags:  risk management securities lending

    Term used to refer to any marginizing method, documented or not, which aims at mitigating credit risk with the use of collateral.

     


  • CRO

    Tags:  economy status

    See  


  • cross currency swap

    Tags:  financial instruments interest rate derivatives

    A contract by which two counterparties agree to exchange specific amounts of two different currencies at the outset and to make repayments over time. In a currency swap, interest payents in two currencies are exchanged over the life of the contract, and the principal amounts are repaid either at maturity or according to a predetermined amortization schedule.

     


  • CRS

    Tags:  supervision and regulation texts of law

    See  


  • CSA

    Tags:  master agreements securities lending

    See  


  • CSB

    Tag:  bonds

    Country:   Canada

    See  


  • CSD

    Tags:  organisations or institutions transaction settlement

    See  


  • CSV

    Tags:  risk management securities lending

    See  


  • CTD

    Tags:  bonds valuation and pricing

    See  


  • cum dividend

    Tags:  equities valuation and pricing

    The trading status of a share such that the buyer is entitled to receive the next dividend payment.

     


  • cum interest

    Tags:  bonds valuation and pricing

    The trading status of a bond such that the buyer is entitled to receive the next interest payment.

     


  • CUPS

    Tags:  financial instruments interest rate derivatives

    See  


  • currency

    Tags:  finance (general) foreign exchange market

    Currency is a generally accepted medium of exchange that is in current use in a particular country or region.

     


  • currency option

    Tags:  options typology

    A currency option gives its holder the right to exchange one currency for another at a predetermined rate and at - or until - a specified date. Strike and expiry date being equal, a call option in one currency is equal to a put option in the other currency.

     


  • currency protected swap (CUPS)

    Tags:  financial instruments interest rate derivatives

    See  


  • currency risk

    Tags:  concept risk management

    See  


  • currency swap

    Tags:  financial instruments interest rate derivatives

    See  


  • current assets

    Tags:  accounting concept

    Assets that will be converted to cash or to other assets in less than a year or within the next operating cycle.

     


  • CUSIP

    Tags:  codes or standards organisations for standardisation

    Country:   United States of America

    See  


  • custodian

    Tags:  financial markets market participants

    A custodian is an organisation which holds securities and cash associated to securities transactions on behalf of its clients. He also handles the settlement of securities transactions on their behalf and provides a range of associated services like reporting, securities lending or the processing of corporate actions.

     


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