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Component IO

It stands for component interest only; a type of CMBS (commercial mortgage-backed security) that is formed by combining a weighted...

Acceleration Covenant

A clause which is added to a debt instrument or swap agreement and requires early payment of interest and principal...

Acceleration Clause

A provision/ clause, normally added to an a credit agreement like an indenture agreement, bond, note, mortgage, deed of trust,...

ACRS

It stands for accelerated cost recovery system; a system of asset depreciation, for tax purposes, that determines the rate of...

Accelerated Depreciation

A system of depreciation that entails higher depreciation expenses in the early years of the life of an asset, for...

Accelerated Cost Recovery System

A system of asset depreciation, for tax purposes, that determines the rate of appreciation for an entity's assets. It involves...

Absolute Return

The return that an asset achieves over the course of a specific period, in absolute terms, i.e., without measuring it...

Absolute Risk

The volatility of an asset's absolute return (i.e., its return measured irrespective of a benchmark rate) as opposed to its...

Annual Compounding

The compounding of interest earned or paid on an interest-bearing instrument (e.g., bond, deposit, etc), or generally any type of...

Absolute Risk Aversion

A metric (risk aversion) that measures the absolute amount of money or resources an investor is willing to expose to...