Tag: default

Keepwell Agreement

Keepwell Agreement What is 'Keepwell Agreement' A contract between a parent company and its subsidiary to maintain solvency and financial backing throughout...

Hara-Kiri Swap

Hara-Kiri Swap What is 'Hara-Kiri Swap' An interest rate or cross-currency swap devoid of any profit margin for the originator. The term...

Hamada Equation

DefinitionIn corporate finance, Hamada's equation, named after Robert Hamada, is used to separate the financial risk of a levered firm from its business risk....

Impaired Credit

Impaired Credit What is 'Impaired Credit' A deterioration in the creditworthiness of an individual or entity. This is usually reflected through a...

Implied Contract

DefinitionA quasi-contract is a fictional contract recognised by a court. The notion of a quasi-contract can be traced to Roman law and is still...

Illiquid Option

Illiquid Option What is 'Illiquid Option' An option contract that cannot be sold for cash quickly at the prevailing market price. Illiquid...

Macroeconomic Swap

Macroeconomic Swap What is 'Macroeconomic Swap' A type of derivative designed to help companies whose revenues are closely correlated with business cycles...

Absolute Priority

Absolute Priority What is an 'Absolute Priority' An absolute priority is a rule that stipulates the order of payment - creditors before...

Cancellation Provision Clause

Cancellation Provision Clause What is 'Cancellation Provision Clause' It is a provision in an insurance policy that permits an insurer or an...

Call Swaption

Call Swaption What is 'Call Swaption' A type of option between two parties that can be exercised on a swap where the...

EDITOR PICKS