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NTM

It stands for near the money; the state in which options or option positions, whose market prices are very near...

FTQ

It stands for flight to quality; at an individual bank's level, it refers to a reallocation tactic whereby banks encountering...

FCF

It stands for fulfillment cash flows; according to international accounting standards, this refers to the risk-adjusted present value of an...

ROE

It stands for return on equity; a profitability measure that indicates how efficiently the company did invest and manage the...

ROS

It stands for return on sales; a profitability ratio that relates profits to sales. In equity form, it is measured...

KO Floor

A barrier floor whereby protection (floor rate mechanism) ceases to exist or deactivates (i.e., knocks out) only if the floating...

Basket CEBO

A shortcut for basket credit event binary option. By definition, it is a cash-settled call option whose underlying is a...

EDS

It stands for equity default swap; a hybrid of an equity derivative and a credit derivative which has identically the...

FRA

It stands for forward rate agreement which is an over-the-counter agreement to apply a certain interest rate to either lending...

FRICTO

An acronym for flexibility (F), risk (R), income (I), control (C), timing (T), and other (O). These represent important factors...