Forward Deal
A transaction consisting of a purchase or sale (often of foreign currency) with settlement to occur at a specified future date. Such a transaction will state the specific amount of the asset to be delivered at the specific time, as well as the unit price at which it will be delivered.
Friday, November 16, 2007
Assumable Mortgage
Assumable Mortgage
A mortgage that can be transfered with no change in terms. If anassumable mortgage is transferred, the buyer assumes allresponsibility for repayment. The original lender must agree tothe transfer of an assumable mortgage. The seller should receivea written release from the original lender stating that he/she hasno responsibility for further payments. The buyer may have to meetcertain standards to qualify and may be charged an assumption fee.Assumable mortgages can make a property more desirable if interestrates have risen, because the new buyer's payments are at the originalrate. By definition, assumable mortgages cannot have a due-on-saleclause.
A mortgage that can be transfered with no change in terms. If anassumable mortgage is transferred, the buyer assumes allresponsibility for repayment. The original lender must agree tothe transfer of an assumable mortgage. The seller should receivea written release from the original lender stating that he/she hasno responsibility for further payments. The buyer may have to meetcertain standards to qualify and may be charged an assumption fee.Assumable mortgages can make a property more desirable if interestrates have risen, because the new buyer's payments are at the originalrate. By definition, assumable mortgages cannot have a due-on-saleclause.
Agreement among Underwriters
Agreement among Underwriters:-
A contract between members of a syndicate, appointing the originating investment bank as the lead underwriter, defining the members'proportionate liability, and authorizing the manager to allocate unitsto a selling group
A contract between members of a syndicate, appointing the originating investment bank as the lead underwriter, defining the members'proportionate liability, and authorizing the manager to allocate unitsto a selling group
Thursday, November 1, 2007
Alligator Spread
Alligator Spread
A position consisting of a combination of put options and call optionsthat collectively create commissions so high that it is almostimpossible to turn a profit regardless of which direction theunderlier moves. The term originates from the idea of the spread"eating the investor alive.".
A position consisting of a combination of put options and call optionsthat collectively create commissions so high that it is almostimpossible to turn a profit regardless of which direction theunderlier moves. The term originates from the idea of the spread"eating the investor alive.".
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