Tag: cd

BanxQuote Money Markets Index definition explanation

What is BanxQuote Money Markets Index?
A money market index, which can be used as a rate-comparison tool by consumers and financial institutions. BanxQuote provides many kinds of data and tools. The money market index gives national, regional, state and local compendiums of money market rates offered by representative lending institutions. Rates are gathered from commercial banks and savings and loan institutions, as well as local certificates of deposit (CDs). Read more for examples and further explanation including related video clips and also comments
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Exponential Moving Average – EMA definition explanation

What is Exponential Moving Average – EMA?
A type of moving average that is similar to a simple moving average, except that more weight is given to the latest data. The exponential moving average is also known as “”exponentially weighted moving average””. Read more for examples and further explanation including related video clips and also comments
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National Commodities And Derivatives Exchange – NCDEX definition explanation

What is National Commodities And Derivatives Exchange – NCDEX?
India’s largest and most recognized commodities exchange, which was established in 2003. The exchange was founded by some of India’s leading financial institutions such as ICICI Bank Limited, the National Stock Exchange of India and the National Bank for Agricultural and Rural Development, among others. Read more for examples and further explanation including related video clips and also comments
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Beige Book definition explanation

What is Beige Book?
A commonly used name for the Fed report called the Summary of Commentary on Current Economic Conditions by Federal Reserve District. It is published just before the FOMC meeting on interest rates and is used to inform the members on changes in the economy since the last meeting. Read more for examples and further explanation including related video clips and also comments
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Dow Jones CDX Indexes definition explanation

What is Dow Jones CDX Indexes?
A series of indices that track North American and emerging market credit derivative indexes. The purpose of the combined indexes is to track the performance of the various segments of credit derivatives so that the overall return can be benchmarked against funds that invest in similar products. Read more for examples and further explanation including related video clips and also comments
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Subprime Credit definition explanation

What is Subprime Credit?
General term for borrowings of subprime debt, or loans made to people with less-than-perfect credit or short credit histories. Subprime credit includes the original borrowing itself, as well as any derivative products such as securitizations that are based on subprime loans and then sold to investors in the secondary markets.

A big portion of the total market for subprime credit is based on subprime mortgages, or home loans to borrowers of questionable creditworthiness. Read more for examples and further explanation including related video clips and also comments
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Synthetic Collateralized Debt Obligation definition explanation

What is Synthetic Collateralized Debt Obligation?
A form of collateralized debt obligation (CDO) that invests in credit default swaps (CDSs) or other non-cash assets to gain exposure to a portfolio of fixed income assets. Synthetic CDOs are typically divided into credit tranches based on the level of credit risk assumed. Initial investments into the CDO are made by the lower tranches, while the senior tranches may not have to make an initial investment.

All tranches will receive periodic payments based on the cash flows from the credit default swaps. If a credit event occurs in the fixed income portfolio, the synthetic CDO and its investors become responsible for the losses, starting from the lowest rated tranches and working its way up. Read more for examples and further explanation including related video clips and also comments
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Loan Credit Default Swap – LCDS definition explanation

What is Loan Credit Default Swap – LCDS?
A type of credit derivative in which the credit exposure of an underlying loan is swapped between two parties. A loan credit default swap’s structure is the same as a regular credit default swap, except that the underlying reference entity is limited strictly to syndicated secured loans, rather than any loan or bond.

Also know as a “”loan-only credit default swap””. Read more for examples and further explanation including related video clips and also comments
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