CREDIT LINKED NOTE - CLN
Security with a credit default swap, which allows a user to transfer a particular credit risk to investors. CLNs are designed through a Special Purpose Company (SPC) or trust that is collateralized with AAA-trading securities. Investors purchase securities from a trust that pays off fixed or floating coupon over the lifespan of a note. Upon reaching maturity, investors receive par unless that credit declares bankruptcy or defaults. The trust engages into a default swap with a deal arranger. Should the trust default, it pays the dealer par less recovery rate in return for annual fee passed on to investors through higher yield on the notes.
POPULAR TERMS
Property Tax
Local governments assess property tax on real estates. The tax is often based on the property’s value.
Onerous Contract
A contract that produces products or services for a bigger amount that would be anticipated profit. A lease contract is an example of onerous contr ...
Overhead
It is an accounting term that refers to all current business expenses not including o direct labor, direct materials or third-party expenses which ...
Substitute
Product or service replacing and satisfying the need of a consumer. This can be perfect or imperfect, depending on whether the substitute partially ...
Materials Requirement Planning - MRP
A production planning and inventory control system designed to manage manufacturing processes and production. A software based integrated informati ...
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Retirement Planning: Maximizing the Power of Compounding
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| Time | Country | Indices | Period |
|---|---|---|---|
| 04:00 | Expected Annual Inflation 2y from now | 4 quarter | |
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| 01:30 | Westpac Consumer Sentiment | Nov | |
| 01:50 | M2 Money Supply + CD | Oct | |
| 02:30 | NAB Business Confidence | Oct | |
| 08:00 | Prelim Machine Tool Orders | Oct | |
| 09:00 | CPI | Oct | |
| 09:00 | Harmonized CPI | Oct |
