Crash of 2008/Related Articles: Difference between revisions

Revision as of 15:02, 24 July 2009

Index

See the related articles subpage to the article on economics [1] for an index to topics referred to in the economics articles.

Parent articles

Subtopics

Glossary

(there are a broader glossaries on the Related Pages subpages of the articles on financial engineering and on the financial system, and there are more detailed glossaries on the subpages of the articles on banking, bank failures and rescues and the subprime mortgage crisis)

ABCP [r]: Add brief definition or description
Agency cost [r]: Add brief definition or description
Arbitrage [r]: transactions to take advantage of a price differences of a product in different markets by buying where it is cheap and selling where it is dear. The possibility of arbitrage often prevents the occurrence of price differences. ^[e]
Basel I & Basel II [r]: international banking regulations put forth by the Basel Committee on Bank Supervision of the Bank for International Settlements requiring banks' minimum capital adequacy ratios to be related to the riskiness of their loans. ^[e]
Beta [r]: A measure of the degree to which the rate of return of a share tracks that of the equity market as a whole (defined as the covariance between the share's rate of return and the average market rate, divided by the variance of the market rate). If beta = 1 the share's rate of return moves in line with the market rate; if it is negative, it falls when the market rate rises. ^[e]
Bubble (economics) [r]: A surge in prices that raises expectations of further increases, so generating further increases: a process that continues until confidence falters, the bubble "bursts" and prices rapidly revert to an objectively-based level. ^[e]
Building society [r]: UK mortgage lender, British counterpart of Savings and Loans. ^[e]
Capital adequacy ratio [r]: The ratio of a bank's capital to its risk weighted credit exposures. May be defined in terms of tier 1 (core) or tier 2 capital. ^[e]
Capital Asset Pricing Model [r]: (CAPM) a model which relates the rate of return of an equity to the equity market rate of return and to that equity's beta factor (see the formula at [2] and see the definition of beta ). ^[e]
CDO [r]: Collateralised Debt Obligation. A portfolio of corporate bonds, grouped into tranches that are ranked by estimated risk. ^[e]
CDS [r]: Credit-Default Swap. An insurance agreement that guarantees protection against a bond default in return for a fee. ^[e]
Central Bank [r]: A government agency that is responsible for monetary policy and the support of the banking system (for example the Federal Reserve Board and the Bank of England). Usually responsible for controlling a country's monetary policy and preserving the value of its currency. ^[e]
CMO [r]: Collateralised Mortgage Obligation. A portfolio of mortgages, grouped into tranches that are ranked by estimated risk ^[e]
Commercial paper [r]: unsecured debt_instruments that are issued by corporations to meet short term financing needs (usually repayable after 3 months). ^[e]
Credit risk [r]: The risk that the value of a loan-based security will fall as a result of defaults on the part of borrowers (as distinct from interest rate risks and exchange rate risks). ^[e]
Debt_instrument [r]: A formal obligation assumed by a borrower to replay the lender in accordance with the terms of an agreement, including bonds, debentures, promissory notes, leases and mortgages. ^[e]
Derivative [r]: An asset whose value depends upon the expected value of another asset. ^[e]
Discounting [r]: (i) The action of selling a bill of exchange before its due payment (or "maturity") date "at a discount": that is to say after paying the purchaser a fee for accepting it. (ii) The practice of calculating the current equivalent of a future cost or benefit by the application of a chosen discount rate. ^[e]
Discount_rate [r]: (i) The percentage by which current value exceeds value in a year's time. (ii) The rate at which banks may borrow at their central bank's discount window. ^[e]
Discount window [r]: Add brief definition or description
Fannie Mae [r]: Add brief definition or description
Federal funds rate [r]: Add brief definition or description
Financial_regulator [r]: Add brief definition or description
Gearing: see Leverage
Freddie Mac [r]: Add brief definition or description
Hedging [r]: Add brief definition or description
Hedge fund [r]: Add brief definition or description
Interbank market [r]: Add brief definition or description
Interest rate risk [r]: Add brief definition or description
Leverage [r]: Add brief definition or description
LIBOR [r]: Add brief definition or description
Liquidity [r]: Add brief definition or description
Liquidity risk [r]: Add brief definition or description

{{r|Liquidity spiral]]

@@ Line 37: / Line 37: @@
 {{r|Basel I & Basel II}}
 {{r|Beta (finance)|Beta}}
+{{r|Bubble (economics)}}
 {{r|Building society}}
 {{r|Capital adequacy ratio}}

Crash of 2008/Related Articles: Difference between revisions

Revision as of 15:02, 24 July 2009

Contents

Index

Parent articles

Subtopics

Related topics

Glossary

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Crash of 2008/Related Articles: Difference between revisions

Revision as of 15:02, 24 July 2009

Index

Parent articles

Subtopics

Related topics

Glossary

Navigation menu

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