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Add-on Interest

A term synonym with add-on yield; in general, it refers to interest that is paid at the maturity date of...

Add-on Yield

In general, it refers to interest that is paid at the maturity date of a loan when the borrower repays the lender...

Loan

An amount of money that is lent by a person or an entity to others (including individuals, entities, etc.) The...

Zombie Bank

A bank whose net worth is less than zero, thus, is said to be a walking dead. This happens when a bank’s assets are worth less...

Balance Guaranteed Swap

A structured swap in which the swap counterparty agrees to adjust the notional principal amount in a fashion that matches the actual outstanding balance...

Cash Leverage

A type of leverage that is made up of borrowed funds such as loans, credit facilities, bond issuances, etc. Cash-producing leverage can be defined as...

Loan Sharking

The practice of lending money to desperate people at unfairly high interest rates. More specifically, loan sharking involves charging interest...

Gestation Period Repo

A reverse repurchase (repo) agreement by which a mortgage firm sells federally guaranteed mortgage-backed securities (MBSs) to a securities dealer...

Crossover Refunding Bond

A bond that is issued for the sake of refinancing an existing bond issue before maturity. The proceeds from the...

Crossover Credit

A credit (in the form of loans, bonds, etc) that fills in the cusp between an investment-grade credit and a...