Friday, July 29, 2005

Tip of the Day

Third-Party Lending: System whereby an institution lends directly to a borrower and retains decision-making power, while all administration (settlement collateral monitoring, and so on) is handled by a third party, such as a global custodian.

Triparty Repo: Repo used for funding/investment purposes in which bonds and cash are delivered by the trading counterparts to an independent custodian bank or clearing house (the 'Triparty Custodian") that is responsible for ensuring the maintenance of adequate collateral value, both at the outset of a trade and over its term. The Triparty Custodian marks the collateral to market daily and makes margin calls on either counterpart, as required. Triparty repo reduces the operational/systems barriers to participating in the repo markets.
Reverse Repo: Transaction whereby one party purchases securities from another party and agrees to resell the securities at a future date at a fixed price.
Securities-Oriented Repo Trade: Transaction motivated by the need of one counterpart to borrow securities and of the other to lend them.
Spot: Standard non-dollar repo settlement two business days forward. A money market convention.

Transaction whereby one party sells securities to another party and agrees to repurchase the securities at a future date at a fixed price.

Occurs when the market value of a security in a repo or securities lending transaction changes and the parties to the transaction agree to adjust the amount of securities or cash in a transaction to the correct margin level.

Initial margin on a repo transaction. Generally expressed as a percentage of the market price.

Deliver-Out Repo:
"Standard" two-party repo, where the party receiving cash delivers bonds to the cash provider.

Hold in Custody (HIC) Repo:
Repo whereby the borrower of cash segregates collateral in a specific internal account for the cash lender, rather than delivering out collateral

ACH Operator :

Automated Clearing House Operator, the central clearing facility operated by a private organization or the Federal Reserve Bank to and from which ACH entries are transmitted and received.

Actual EPS, CPS, or DPS :

Reported annual Earnings Per Share (EPS -Trailing 12 months), cash flow (CPS) or Dividends Per Share (DPS) for a company for the fiscal year indicated.

Analyst :

A person with expertise in evaluating financial investments; he or she performs investment research and makes recommendations to institutional and retail investors to buy, sell, or hold; most analysts specialize in a single industry or business sector.

Announcement Date :

The date on which the company first made news of the split public.

Annual Report (10K) :

An audited report of a corporation’s year-end financial results and operations filed with the SEC. Shareholders may obtain a free copy of this report from the corporation.


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