term1 Definition1term2 Definition2term3 Definition3
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GDP
=C+G+I+NX
C" is equal to all private consumption, or consumer spending, in a nation's economy"G" is the sum of government spending"I" is the sum of all the country's businesses spending on capital"NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports)
auction
bond issuing mechanism that involves bidding
t-bills vs. capital market securities (e.g. t-notes/t-bonds corporate bonds etc)
t-bills are pure discount bonds and capital market securities are usually coupon bearing bond which pay interest periodically until maturity
bilateral loan
loan from a single lender to a single borrower(corporate)
syndicated loan
loan from a group of lenders to a single borrower
in underwriting this is when more than one investment bank underwrites and offering
commercial paper
a short term unsecured promissory note issued in the public market or via a private placement that represents a debt obligation of the issuer
source of fudning for working capital and seasonal demands for cash
also a source of bridge financing
can range from overnight to one year but usually 3 months
bridge financing
interim financing that provides funds until permanent financing can be arranged
medium term note MTN
a note issued by a corporation through a dealer that is continuously available to investors, there are no specific issue dates
floating rate notes
notes whose interest rate moves inversely with a benchmark of bonds (LIBOR) interest rates
used to lessen interest rate risk
when interest rates rise so so the interest rates of these bonds
payment in kind
2. A financial instrument that pays interest or dividends to investors of bonds, notes or preferred stock with additional debt or equity instead of cash. Payment-in-kind securities are attractive to companies who would prefer not to make cash outlays. They are often used in leveraged buyouts.
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