Tag: default
Private Mortgage Insurance
What is Private Mortgage Insurance
Private mortgage insurance is insurance that protects a lender in the event that a borrower defaults on a conventional home...
Quanto Swap
What is 'Quanto Swap' A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on...
Quality Spread Differential (QSD)
What is 'Quality Spread Differential - QSD'
The term 'quality spread differential', or QSD, refers to the difference between the price of a low-quality commodity...
Vanilla Option
What is a 'Vanilla Option' A vanilla option is a financial instrument that gives the holder the right, but not the obligation,...
Dead Cat Bounce
What is a dead cat bounce and how can you spot one in the stock market
A "dead cat bounce" is a small, short-lived recovery...
Unconditional Probability
What is 'Unconditional Probability
The definition of unconditional probability is the chance that a single outcome results from a sample of possible outcomes. To find...
Credit Default Swap
DefinitionA credit default swap is a financial swap agreement that the seller of the CDS will compensate the buyer in the event of a...
Junk Bond
A non-investment grade or high yield bond is referred to as a junk bond. As the name suggests, these bonds have a credit rating...
Jarrow Turnbull Model
DefinitionThe Jarrow–Turnbull credit risk model was published by Robert A. Jarrow of Kamakura Corporation and Cornell University and Stuart Turnbull, currently at the University...
Jingle Mail
What is 'Jingle Mail' A situation where a homeowner mails his or her house keys to a mortgage lender due to an...