Crash of 2008/Related Articles

See also changes related to Crash of 2008, or pages that link to Crash of 2008 or to this page or whose text contains "Crash of 2008".

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Index

See the economics index for an index to topics referred to in the economics articles.

Parent articles

Banking

Economics

Financial system

Financial economics

Related topics

Bank failures and rescues

Risk management

Subprime mortgage crisis

Glossary

See the economics glossary for definitions not shown on this page

• ABCP [r]: Add brief definition or description
• ABX index [r]: Add brief definition or description
• Agency cost
• 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 [1] 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
• Fair value [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
• Liquidity spiral [r]: Add brief definition or description
• Margin account [r]: Add brief definition or description
• Margin call [r]: Add brief definition or description
• Market risk [r]: Add brief definition or description
• Mark to market [r]: Add brief definition or description
• Money market [r]: Add brief definition or description
• Moral hazard [r]: Add brief definition or description
• Option [r]: Add brief definition or description
• Portfolio insurance [r]: Add brief definition or description
• Prime rate [r]: Add brief definition or description
• Recession (economics) [r]: Add brief definition or description
• Reserve ratio [r]: Add brief definition or description
• Risk premium [r]: Add brief definition or description
• Roll-over [r]: Add brief definition or description
• Savings and loans [r]: Add brief definition or description
• Securitisation [r]: Add brief definition or description
• Selling short [r]: Add brief definition or description
• Structured investment vehicle [r]: Add brief definition or description
• Subprime lending [r]: Add brief definition or description
• Swap: see CDS
• TARP [r]: Add brief definition or description
• Tail risk [r]: Add brief definition or description
• Value at risk [r]: Add brief definition or description
• Warrant [r]: Add brief definition or description
• Wholesale banking [r]: Add brief definition or description