According to the Hanbali school of thought (mazhab), monetization (or in Arabic “tawarruq“) is the process of purchasing a commodity…

In the context of private equity fund investments, limited partners contribute capital to funds that diversify globally, rather than confine…

A forward option in which the payout is measured as the difference between the forward rate (or the strike) set…

An investor who tries to uncover bargains in the securities of troubled companies. Stocks that trade at prices sufficiently lower…

English for al-wa’ad bil ba’i/ bai’/ bay’ (الوعد بالبيع). It is usually embedded in exchange-based contracts (uqud al-mua’wadhah) such as…

A synthetic structure that consists of a single tranche. It is simpler than a standard synthetic tranche and can be…

A swaption (swap option) that can be exercised anytime the holder finds favorable or suitable during the options life. Once…

An interest rate cap that has its rates reset in arrears and likewise paid in arrears. However, in practice, a…

The fifty large-capitalization stocks with outstanding growth record and prospects such as IBM, Kodak, McDonald’s, Disney, Xerox, DuPont, General Electric,…

A path-dependent option in which the payoff is based on an average of underlying asset prices, interest rates, indices, or…