Author: Finance Meaning

The frequency with which an asset is replaced by an equivalent asset….

Idea that future replacement decisions must be taken into account in selecting among projects….

The currency in which the parent firm prepares its own financial statements; that is, U.S. dollars for a U.S. company….

A portfolio constructed to match an index or benchmark….

The pool factor as reported by the bond buyer for a given amortization period….

The Treasury, when it wants to sell additional securities, will occasionally sell more of an existing issue (reopen it) rather than offer a new issue….

See:full-service lease….

In a purchase and sale, the yield to maturity at which the underwriter offers to sell the bonds to investors….

The amount of principal dollars remaining to be paid under the mortgage as of a given point in time….

The ratio of the yield spread to the yield level….

A pass-through tax entity that can hold mortgages secured by any type of real property and issue multiple classes of ownership interests to investors in the form of pass-through certificates, bonds, or other legal forms. A financing vehicle created under the Tax Reform Act of 1986….

The foreign market in the Netherlands….

The risk that proceeds received in the future will have to be reinvested at a lower potential interest rate….

Real estate investment trust, which is similar to a closed-end mutual fund. REITs invest in real estate or loans secured by real estate and issue shares in such investments….

The surplus as measured using regulatory accounting principles (RAP) which may allow the non-market valuation of assets or liabilities and which may be materially different from economic surplus….