Economics/Glossary

• ABCP [r]: Add brief definition or description
• Agency cost [r]: Add brief definition or description
• Arbitrage [r]: transactions to take advantage of a price differences of a product in different markets by buying where it is cheap and selling where it is dear. The possibility of arbitrage often prevents the occurrence of price differences. ^[e]
• Basel I & Basel II [r]: international banking regulations put forth by the Basel Committee on Bank Supervision of the Bank for International Settlements requiring banks' minimum capital adequacy ratios to be related to the riskiness of their loans. ^[e]
• Beta [r]: Please do not use this term in your topic list, because there is no single article for it. Please substitute a more precise term. See Beta (disambiguation) for a list of available, more precise, topics. Please add a new usage if needed.
• Building society [r]: UK mortgage lender, British counterpart of Savings and Loans. ^[e]
• Capital (banking) [r]: A bank's assets minus its liabilities. ^[e]
• Capital adequacy ratio [r]: The ratio of a bank's capital to its risk weighted credit exposures. May be defined in terms of tier 1 (core) or tier 2 capital. ^[e]
• Capital adequacy ratio [r]: The ratio of a bank's capital to its risk weighted credit exposures. May be defined in terms of tier 1 (core) or tier 2 capital. ^[e]
• CDO [r]: Collateralised Debt Obligation. A portfolio of corporate bonds, grouped into tranches that are ranked by estimated risk. ^[e]
• CDS [r]: Credit-Default Swap. An insurance agreement that guarantees protection against a bond default in return for a fee. ^[e]
• Central Bank [r]: A government agency that is responsible for monetary policy and the support of the banking system (for example the Federal Reserve Board and the Bank of England). Usually responsible for controlling a country's monetary policy and preserving the value of its currency. ^[e]
• CMO [r]: Collateralised Mortgage Obligation. A portfolio of mortgages, grouped into tranches that are ranked by estimated risk ^[e]
• Commercial paper [r]: unsecured debt_instruments that are issued by corporations to meet short term financing needs (usually repayable after 3 months). ^[e]
• Contagion (banking) [r]: the spread of a run, loss or insolvency from one bank to another, or the spread of a banking crisis from one country to another. ^[e]
• Corporation [r]: Please do not use this term in your topic list, because there is no single article for it. Please substitute a more precise term. See Corporation (disambiguation) for a list of available, more precise, topics. Please add a new usage if needed.
• Cost_of_capital [r]: The weighted average of the rates of return paid by a company on its equity (share issue) and on its debt (bonds and commercial borrowing). ^[e]
• Covariance [r]: A statistical parameter that indicates whether two random variables show a related linear trend. ^[e]
• Credit risk [r]: The risk that the value of a loan-based security will fall as a result of defaults on the part of borrowers (as distinct from interest rate risks and exchange rate risks). ^[e]
• Debt_instrument [r]: A formal obligation assumed by a borrower to replay the lender in accordance with the terms of an agreement, including bonds, debentures, promissory notes, leases and mortgages. ^[e]
• Derivative [r]: An asset whose value depends upon the expected value of another asset. ^[e]
• Discount window [r]: A facility provided by central banks that enables a bank to make secured short-term loans at its central bank's discount rate. ^[e]
• Discount_rate [r]: (i) The percentage by which current value exceeds value in a year's time. (ii) The rate at which banks may borrow at their central bank's discount window. ^[e]
• Dividend discount model [r]: The value of a share is (definitionally) equal to the total of its discounted future dividend payments. ^[e]
• Fannie Mae [r]: (Federal National Mortgage Association) US government-sponsored enterprise created to provide financial support to Savings and Loans. Privatised in 1968. ^[e]
• Financial asset [r]: An asset that derives it value from a legal claim - including stocks, bonds and loans. ^[e]
• Financial_Intermediary [r]: Add brief definition or description
• Financial_regulator [r]: Add brief definition or description
• Freddie Mac [r]: Add brief definition or description
• Gearing: see Leverage
• Hedge fund [r]: Add brief definition or description
• Hedging [r]: Add brief definition or description
• Herding (banking) [r]: Add brief definition or description
• Insolvency [r]: Add brief definition or description
• Interbank market [r]: Add brief definition or description
• Interest rate risk [r]: Add brief definition or description
• Lender of last resort [r]: Add brief definition or description
• Leverage [r]: Add brief definition or description
• LIBOR [r]: Add brief definition or description
• Liquidity risk [r]: Add brief definition or description
• Liquidity [r]: Add brief definition or description
• Margin account [r]: Add brief definition or description
• Margin call [r]: Add brief definition or description
• Market risk [r]: Add brief definition or description
• Money market [r]: Add brief definition or description
• Moral hazard [r]: Add brief definition or description
• Noise_traders [r]: Add brief definition or description
• Option [r]: Add brief definition or description
• Portfolio insurance [r]: Add brief definition or description
• Prime rate [r]: Add brief definition or description
• Purchase and assumption [r]: Add brief definition or description
• Random_walk [r]: Add brief definition or description
• Recession (economics) [r]: Add brief definition or description
• Reserve ratio [r]: Add brief definition or description
• Risk premium [r]: Add brief definition or description
• Roll-over [r]: Add brief definition or description
• Run (banking) [r]: Add brief definition or description
• Savings and loans [r]: Add brief definition or description
• Securitisation [r]: Add brief definition or description
• Selling short [r]: Add brief definition or description
• Standard deviation [r]: Add brief definition or description
• Stop loss [r]: Add brief definition or description
• Structured investment vehicle [r]: Add brief definition or description
• Subprime lending [r]: Add brief definition or description
• Swap: see CDS
• Systemic failure (finance) [r]: Add brief definition or description
• TARP [r]: Add brief definition or description
• Tier 1 capital [r]: Add brief definition or description
• Value at risk [r]: Add brief definition or description
• Variance [r]: Add brief definition or description
• Warrant [r]: Add brief definition or description
• Wholesale banking [r]: Add brief definition or description