RESIDUAL INTEREST BONDS - RIBS
A type of inverse floating-rate bond created by dividing the income from a municipal bond into two portions. The municipal bondholder will create two new securities: a primary direct floating-rate bond and a residual inverse floating-rate bond. The floaters will be linked to a reference interest rate, such as LIBOR, and the municipal bond's income will be used to pay the coupon on the direct floater, with any remaining income going toward the residual interest bond.
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Title Loan
Loan in which a borrower is required to use his asset as collateral. This is popular for two reasons: the applicant’s credit rating is not be ...
Fiscal Year - FY
Fiscal year is a period companies or governments use for accounting purposes and preparing financial statements. It may or may not be the same as a ...
Bank Wire
It allows major banks to communicate actions about their client accounts. It secures computerized messaging system that can send account informatio ...
Gold Bug
Individual betting bullish on gold. These people believe gold is still a stable source of fund like the period of the gold standard international c ...
Interest Rate Risk
A peril which an investment’s worth will change due to an unexpected interest rate change, the spread between two rates, shape of the yield c ...
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