Tag: swaps

What is a 'Vanilla Option' A vanilla option is a financial instrument that gives the holder the right, but not the obligation,...

Definition A variance swap is an over-the-counter financial derivative that allows one to speculate on or hedge risks associated with the magnitude of movement, i.e....

Futures are a type of financial contract whereby an investor is obliged to buy an asset at a specified future price and date. The...

DefinitionA credit default swap is a financial swap agreement that the seller of the CDS will compensate the buyer in the event of a...

DefinitionOff-balance sheet, or Incognito Leverage, usually means an asset or debt or financing activity not on the company's balance sheet. Total return swaps are...

What is a ‘Targeted Accrual Redemption Note – TARN' A targeted accrual redemption note (TARN) is an investment vehicle, calculated based on a variation of...

LIBOR stands for the London InterBank Offered Rate. It is also termed as ICE LIBOR these days because the Inter Continental Exchange or ICE...

What is a 'Lapping Scheme' A lapping scheme is an accounting method that involves altering the accounts receivable section of the balance...

What is an 'Economic Derivative' An economic derivative is a relatively new form of derivative contract (the first ones were traded in...

What does 'GBP' mean GBP is the abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories of...