High Credit
Financial & Investment Dictionary:
High Credit
Home > Library > Business & Finance > Finance and Investment Dictionary ...
HIGH CREDIT - The maximum amount of outstanding loans for a particular customer on a bank's record.
HIGH CURRENT INCOME MUTUAL FUND - A mutual fund whose primary goal is to produce a high level of income...
high credit The maximum dollar amount of all loans an individual can have outstanding at... high yield The description of investments with high rates of return.
Adverse selection concerns the difficulty to select and distinguish good companies, those with a high credit rating, from thosethat are more risky.
Commercial paper A short-term, unsecured loan typically issued by companies with high credit ratings (and therefore relatively low risk) for financing internal accounts.
Stock of "blue chips" or "blue chip stock" demonstrate some combination of high credit rating, strong balance sheet, stable earnings power. A blue chip stock usually has a diversified revenue base.
With high credit, all doors open and things are easy to acquire. Yet, there is an overwhelming number of Americans whose credit score is on the lower end. For civilians, refinancing their homes with lower credit scores is a disheartening experience.
Regulatory arbitrage can transform how assets are treated (for example, securities with a high credit rating may have a lower risk-weighting than the assets backing them).
Junk bonds are bonds that are considered high yield but also have a high credit risk. They are generally low rated bonds and are usually bought on speculation, with the investor hoping for the yield, rather than the default.
Insured bonds tend to carry a high credit rating but to pay a lower return than comparably rated uninsured bonds. The largest municipal bond insurers include: The Municipal Bond Investment Assurance Corp. (MBIA), Federal Guarantee Insurance Corp.
Investment securities that are short-term, have high credit quality and are highly liquid.
Also referred to as "cash and equivalents".
Understanding Financial Liquidity
Introduction To Money Market Mutual Funds ...
It is issued by companies which have high credit ratings. This instrument is a cash management tool to finance short-term financial needs.
Although these securities generally have high credit ratings due to the fact that they are sponsored by the federal government, they are not backed by the full faith and credit of the U.S. government, unlike Treasury securities.
of the amount of the bond needed and the inability of the seller to assure that the property would continue to comply (such power effectively being with the new owner), sureties were likely to require either full collateral or very high ...
Short-term, unsecured promissory notes issued by corporations with a high credit ratings. Their maturity ranges up to 270 days. ...
Although these securities have high credit ratings, they are not considered to be government obligations and therefore are not directly backed by the full faith and credit of the government as treasuries are.
Replace a high-coupon bond with a new, lower-coupon bond.
High credit ...
GOVERNMENT SECURITIES: Bonds and other debt instruments issued by the U.S. Treasury. Government securities have high credit ratings and are backed by the full faith and credit of the federal government.
government agencies such as the Federal National Mortgage Association. Although agency securities have high credit ratings, they are not government obligations and are not directly backed by the full faith and credit of the U.S. government.
Commercial Paper. Short-term (generally 2 to 270 days) obligations (notes) issued by banks and corporations with high credit ratings. These notes are usually unsecured and usually issued at a discount.
However, to enhance the overall yield FMPs may assume high credit risk and run the risk of default. As the liquidity and credit conditions are tightening, some of the companies in which FMP's have invested could be relatively unsafe.
The contractual rules for the cash flow distributions in a CDO structure enable the senior tranches to receive high credit ratings by shifting risk to the equity tranche. See collateralized debt obligation and waterfall.
In the United States, rating agencies like Fitch, Standard & Poor's and Moody's use a rating system of AAA, AA, A, BBB, BB, B, CCC, CC, C, D. Anything below a BB rating is usually considered to be a junk bond and carries a high credit risk.
you could borrow $13,000 on a home-equity loan at the same 9 percent and retire those other bills. Then your cost to pay off the home-equity loan in a year would be slightly lower - $1,137 a month - because you're no longer paying high credit-card ...
did this by dividing the mortgages into different slices for different investors. A high risk slice at the bottom (with a much lower credit rating) would absorb all the risk of defaults. This protected the slices above and allowed the high credit ...
A high credit rating can help in reducing the interest cost and also facilitate placement of the debt security.
An issuer with very high credit quality will be able to sustain a significant financial setback and still be able to repay its interest and principal obligations in a timely manner.
 See also: Banks, Values, Funding, Expense, Stock split
  
|
RSS
