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Keepwell Agreement
What is a Keepwell Agreement
A Keepwell Agreement is a contract between a parent company and its subsidiary stating that the subsidiary will not be...
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 gets its...
Impaired Credit
What is 'Impaired Credit' A deterioration in the creditworthiness of an individual or entity. This is usually reflected through a lower credit...
Implied Contract
What is an implied contract
An implied contract is a legally binding agreement between two parties that is not written or spoken, but is simply...
Illiquid Option
What is 'Illiquid Option' An option contract that cannot be sold for cash quickly at the prevailing market price. Illiquid options have...
Macroeconomic Swap
What is 'Macroeconomic Swap' A type of derivative designed to help companies whose revenues are closely correlated with business cycles to reduce...
Absolute Priority
What is an 'Absolute Priority' An absolute priority is a rule that stipulates the order of payment - creditors before shareholders -...
Cancellation Provision Clause
What is 'Cancellation Provision Clause' It is a provision in an insurance policy that permits an insurer or an insurance company to...
Call Swaption
What is 'Call Swaption' A type of option between two parties that can be exercised on a swap where the buyer of...
CDO – Collateralized Debt Obligation
What is CDO (Collateralized Debt Obligation)? Collateralized Debt Obligation or CDO is a financial product that brings together assets that can generate cash flow...