Cushion bonds
High-coupon bonds that sell at only at a moderate premium because they are callable at a price below that at which a comparable non-callable bond would sell. Cushion bonds offer considerable downside protection in a falling market.
Cushion
Cushion definition :
In the context of project financing, the extra amount of net cash flowremaining after expected debt service.
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cushion
interval between the issue date of a security and the earliest call date .
20% Cushion Rule
20% Cushion Rule definition :
Guideline that revenues from facilities financed by municipal bonds should exceed the operating budget plus maintenance costs and debt service by at least 20% to allow for unforeseen expenses.
The Euro Bank Safety Cushion
Financial market sensitivity is often driven by a desire to rally based on even the most facile indicators.
Cushion Theory
A theory which asserts that if many investors have short positions in a stock, the stock's price must inevitably rise because the short positions must eventually be covered by purchases of the stock.
Cushion
Portion of the assets of a guaranteed or protected fund that can be exposed to risk without jeopardising the guarantee or protection feature.
Cushion: A small excess amount of funds which many lenders may require be kept in an escrow account.
Debt: A sum of money due by certain and express agreement.
Cushion: The extra amount of net cash flow remaining after expected debt service.
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20% cushion rule
Guideline that revenues from facilities financed by municipal bonds should exceed the operating budget plus maintenance costs and debt service by at least 20% to allow for unforeseen expenses.
Safety cushion
In a contingent immunization strategy, the difference between the initially available
immunization level and the safety-net return.
Contingent claim ...
cushion of equity to protect the finance provided. A more rational answer is that leasing is advantageous if it provides more finance than the borrowing which it displaces.
Cushion theory
The theory that a stock with many short positions taken in it will rise, because these positions must be covered by the stock.
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Cushion (finance term)
First-In, First-Out (FIFO) (in accounting)
Inventory Valuation (in accounting)
Dollar Value Lifo (business term)
Inventory (business term)
Cost of Goods Sold (finance term)
Inventory Reserve (in accounting) ...
Cushion
An amount of money added to a budget for delays, poor weather, changing economic conditions, and other unforeseen occurrences.
Cushioning devices (rubber, plastic, wood, etc.) mounted at the extreme rear of a chassis ortrailer to take the impact when it backs into a loading dock or platform (road cargo).
Dock Receipt ...
cushion bonds
An informal name for callable bonds with long maturities that have coupon rates well above current market rates.
Cushion bonds
High-coupon bonds trading at a premium that tend to fall in price much less than comparable bonds when interest rates rise (hence the cushion effect), because of their high coupons.
Safety cushion In a strategy, the difference between the initially available immunization level and the safety-net .
Safety-net return The minimum available that will trigger an in a strategy.
English: Cushion bonds
Espaņol: Bono amortiguador
Obligation ā taux variable: ...
Accounting Cushion
The overstatement of a company's expense provision, in order to create a cushion for future results. A company can use this to artificially understate income in the current period by overstating liability or allowance accounts.
Redemption cushion
The percentage by which the conversion value of a convertible security exceeds the redemption price (strike price).
Redemption or call ...
Holding by a bank of bonds and money market instruments. For a fee, the bank bank clips coupons and presents for payment at maturity.
Safety cushion ...
Cushion The minimum period between the time a bond is issued and the time it is called.
Dollar safety margin The dollar equivalent of the safety cushion for a portfolio in a contingent immunization strategy. Dollar shortage Results when a nation importing US goods cannot pay for them without the aid of the United States.
The term given to the idea that shares bought for less than two thirds of their net asset value offer a cushion against any deterioration in...(Read more)
Margin Securities
Securities which may be bought or sold on margin.
Psychologists test long-held theory of emotional cushioning. pyschcentral.com. Retrieved 22/02/08.
^ Segerstrom SC (September 2006). "How does optimism suppress immunity? Evaluation of three affective pathways". Health Psychol 25 (5): 653-7.
We're all smart enough to understand why it's important to have a cushion of cash in the bank.
Current-coupon issues Related: Benchmark issues Cushion bonds High-coupon bonds that sell at only at a moderate premium because they are callable at a price below that at which a comparable non-callable bond would sell.
Downside protection is a cushion against the potential loss resulting from a price decline in a security or market.
loans and investments as a cushion against probable losses in investments and loans. In simple terms, this means that for every Rs.100 of risk-weighted assets, a bank must have ` X in the form of capital.
RSP Overcontribution Cushion: A penalty-free lifetime allowance of $8,000. The tally begins with overcontribution for 1991. This cushion was designed to provide leeway for mistakes and to accommodate past-service pension adjustments.
(Isn't coincidence wonderful?) My quick shopping trip for a pair of cushioned insoles, analgesic rub, and an ankle wrap is lengthened, however, by crossing paths with the normally quiet Stella von Steincamp.
See also: Country Risk, Liquidity Cushion, Liquidity Risk, Political Risk, Price Risk, Reinvestment Risk, Risk, Risk Averse, Risk/Return Tradeoff, Spread, Systematic Risk, Unsystematic Risk
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They are intended to act as a cushion between senior bondholders and shareholders, who will suffer first if capital is lost.
Deposit accounts are a good place for funds that you want to be safe, liquid and easy to get to-such as savings for a down payment, or a cushion for unexpected expenses like car repairs or emergency medical expenses.
Any feature built into the economy that automatically cushions fluctuations.
Balance of Payments
The difference between the demand for and supply of a country's currency on the foreign exchange market.
The dollar equivalent of the safety cushion for a portfolio in a contingent immunization strategy.
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DOWNSIDE PROTECTION - Generally used in connection with covered call writing, this is the cushion again...
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Total liabilities divided by total shareholders' equity. This is a measure of the cushion available to creditors should the firm be forced to liquidate. The ratio is sometimes calculated by dividing total long-term debt by shareholders' equity.
Term used for cardboard, empty pallets, plywood, foam rubber, air bags, or other items used to cushion or protect freight while in transit.
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Particularly, in the BIS standardized method of calculating regulatory capital needed to cushion market risk, long and short positions in fixed income instruments that individually face interest rate risk initially reduce each other.
Ask yourself who will really enjoy retirement more-a couple that lives more modestly, withdraws less and maintains a large cushion.
By spreading your investment among different regions (for example, Canada, Europe, and Asia), currencies, and types of securities (for example, both stocks and bonds), you cushion your portfolio against sudden swings in any one area.
As an entrepreneur, you're likely to face many more volatile income fluctuations than you would as an employee of a large company, and you need to retain absolutely every penny you can to build up a cushion in case things get rough.
Amount per share set in the ARTICLES OF INCORPORATION of a CORPORATION to be entered in the CAPITAL STOCKS account where it is left permanently and signifies a cushion of EQUITY capital for the protection of CREDITORS.
The income can help to cushion short-term changes in stock prices when the market is down, which could help provide more stable returns through all market cycles. Growth and Income funds have historically been the least risky of equity funds.
Education, triple net lease properties, stocks, and certificate of deposit are just some of the opportunities people invest in. Find out which ones will work out for you to cushion the blow of the downturn in the economy.
In either case, if you're right about the behavior of the underlying instrument - for example, if a stock whose price you expect to fall does lose value - you could have a net profit. If you're wrong, you could have a net loss cushioned by the income ...
The company has cushioned itself against a price risk and does not have to worry that its production and marketing strategy will be disrupted by a sudden price increase. But what if prices fall?
Followers of the short interest theory believe an increase in short interest is a bullish signal since the short sellers will eventually need to purchase stock to cover their shorts. This cushion of potential buyers will tend to support a declining ...
The Buy to Let lender will also usually require that the rent received on the property amounts to between 130-150% of the interest payable on the mortgage, which gives you a cushion in your finances.
The term haircut comes from the fact that market makers can trade at such a thin spread.
When they are used as collateral, securities will generally be devalued since a cushion is required by the lending parties in case the market value falls.
represents the total amount of capital the entire Group sets aside as a buffer against potential losses and needs to support its business activities and all positions held. Internal capital is the sum of the aggregated economic capital and a cushion ...
Costs allocable to natural gas acquired for resale, to the extent these costs would otherwise be allocable to "cushion gas" stored underground
Property produced if substantial construction occurred before March 1, 1986 ...
The argument, in contrast to the infant industry argument, that a mature industry should be provided protection, either to help it restore its competitiveness, or to cushion its exit from the economy.
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cushion A characteristic of some callable bonds in which the bonds may not be called... CUSIP Acronym for Committee on Uniform Securities Identification Procedures. The committee...
 See also: Banks, Expense, Indenture, Saving, Revenue bond
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