A fund of liquid assets (cash or cash equivalents) which a company earmarks to pay for a takeover of another…

A collateral, in a repo transaction or CMOs, that comes in the form of a whole loan. For whole loan…

A complex hedging technique which is designed to mitigate different risk exposures usually associated with options. Those exposures are often…

A debt security which is issued to savers by a government for the purpose of collecting money that will be...

A measure of a swap‘s value sensitivity to interest rate changes. The duration of a swap is equal to the…

The yield on a taxable bond issue after income taxes are paid. It is computed as follows: tax-equivalent yield =…

A hedging technique which aims to make the price of a set (or portfolio) of derivatives immune to small movements in…

Arabic (ربا مباشر) for direct riba. It constitutes an increment that a lender receives over and above the principal amount…

In general, drawdown (also draw-down) refers to a reduction in the value of an asset/ investment/ account/ fund below its…

A hawala that involves the transfer of the right to claim from one creditor to another. The new creditor replaces…