Reversion

Reversionary Income Plan. Many elderly people find themselves 'house rich but income poor' when they approach retirement.

Mean reversion is a tendency for a stochastic process to remain near, or tend to return over time to a long-run average value. For example, interest rates and implied volatilities tend to exhibit mean reversion.

Mean reversion
Reversion to mean is the tendency of a number that changes over time to return to its long term average value after a period above or below that.

ASSET REVERSION - asset recovery by the sponsoring employer through termination of a defined benefit pe...
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Reversion: A reversion arises when a tenant grants an estate of lesser maximum duration than his own. Ownership of the land returns to the original tenant when the grantee's estate expires. The original tenant's future interest is a reversion.

REVERSIONARY WORKING INTEREST " An arrangement in an oil and gas limited partnership in which the limited partners bear all expenses.

Reversionary working interest: In oil and gas programs, a sharing arrangement whereby the general partner does not share in revenues until the limited partners have recouped their initial investment.

Mean reversion
The name given to the processes by which variables such as prices, rates, and volatilities tend to return to a mean or average value after reaching extremes.
Mediums
Government stocks that have five to 15 years until repayment.

Mean reversion
The tendency for subsequent observations of a random variable to be closer to its mean than the current observation.

mean reversion
The behavior of a variable in which the values for that variable move towards the long-run average value for that variable.
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Mean Reversion
The principle that over a period of time, the market price of a security (eg. the credit spread relative to an underlying bond) will revert back to its mean level.

Pension reversion
Termination of an overfunded defined benefit pension plan and replacement of it with a life insurance company-sponsored fixed annuity plan.
Pension sponsors
Organizations that have established a pension plan.

reversion of property to the state under certain prescribed conditions when the owner dies without heirs or if a depositor's account remains inactive for a specified number of years and the owner cannot be located.

REVERSIONARY INTEREST
A transferor's right to have property returned after the termination of an intervening estate or interest. IRC § 673
SETTLOR
One who creates and/or funds a trust. See grantor.

Reversion of real or personal property to the State when 1) a person dies without leaving a will and has no heirs, or 2) when the property (such as a bank account) has been inactive for a certain period of time.
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Reversion of monies or securities to the state in which the securityholder was last known to reside, when no claim by the securityholder has been made after a certain period of time fixed by state law. This known as the holding period or cut-off date.

Mean Reversion - Is the postulate that short term rates or volatilities will move toward longer term averages.
MECs - Are Modified Endowment Contracts.

Mean reversion is a mathematical methodology sometimes used for stock investing, but it can be applied to other processes.

Mean-Reversion
With stocks returns past winners become future losers and vice versa. Picking well-performing stocks in one period may not necessarily guarantee future positive returns especially in the case of growth stocks.

Also see: Expected return Mean reversion The idea that stock prices revert to a long term level. Hence, if there is a shock in prices (unexpected jump, either up or down), prices will return or revert eventually to the level before the shock.

pension reversion The conclusion of a pension plan, undertaken by a firm with an overfunded pension plan in order to reclaim the surplus assets. people pill A type of poison pill action in which most or all of the current management...

Simple Reversionary Bonus
A with profits life assurance bonus, normally declared annually, which is based on the profits of the life companys investments. The simple ...(Read more)
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Early cointegration studies have generally shown the absence of significant mean-reversion of the exchange rate towards PPP for the recent floating rate experience, ...

Another important application of modern methods consists of what may be described as the slip system, which is in many respects a reversion to the method of keeping records upon movable slabs or tablets, ...

They claimed that excessive mean reversion resulted from prices straying from fundamentals, similar to Shiller's excess volatility story.

A lease given by a lessee for a portion of the leasehold interest but retaining some reversionary interest in the lessee. The sublease may be for all or part of the premises, for the whole term or for part of it.

The first is a mean-reversion argument; that is, if the asset has deviated from its usual level, it should eventually return to that usual level. The second reason has to do with overreaction.

The absolute total interest in real property. Related: life estate, reversion.
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Guidelines that state a trust is considered to be a grantor trust if the grantor has a reversionary interest greater than 5% of the trust assets (at the time the transfer of assets to the trust is made).

Property Residual Technique Method of Capitalization: Property residual technique method of capitalization is a method of capitalization in which property is divided into its income portion and its reversion portion.

An investment style that leads one to buy assets that haveperformed poorly and sell assets that have performed well. Thereare two possible reasons this strategy might work. The first is amean-reversion argument
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Grantor. A person who creates a trust or transfers real property to another entity. In a U.S. grantor trust, the person responsible for U.S. income taxes on the trust. May have a reversionary interest in a trust.

In fact it was predictable that returns would soon be lower to make up for the fact that they had gotten so high. In affect there is a "law of averages" or reversion to the mean (long-run average) that applies.

REVERSIONARY TRUST A type of trust that is limited to a specified period of time. This period may be a specified number of years or for the life of the beneficiary.

See also: Expense, Banks, Values, Risk premium, Expected return