| Home | About Us | Loan Advice | Secured Loans | Personal Loans | Bad Credit Loans | Homeowner Loans | Contact Us |
|
|||||||||||||||||||
|
|||||||||||||||||||
|
|||||||||||||||||||
|
|||||||||||||||||||
  
Also referred to as credit risk (as gauged by commercial rating companies), the risk that an issuer of a bond
may be unable to make timely principal and interest payments.
Defeasance
Practice whereby the borrower sets aside cash or bonds sufficient to service the borrowers debt. Both the
borrowers debt and the offsetting cash or bonds are removed from the balance sheet.
Deferred-annuities
Tax-advantaged life insurance product. Deferred annuities offer deferral of taxes with the option of
withdrawing ones funds in the form of life annuity.
Deferred call
A provision that prohibits the company from calling the bond before a certain date. During this period the
bond is said to be call protected.
Deferred equity
A common term for convertible bonds because of their equity component and the expectation that the bond
will ultimately be converted into shares of common stock.
Deferred futures
The most distant months of a futures contract. A bond that sells at a discount and does not pay interest for
an initial period, typically from three to seven years. Compare step-up bond and payment-in-kind bond.
Deferred nominal life annuity
A monthly fixed-dollar payment beginning at retirement age. It is nominal because the payment is fixed in
dollar amount at any particular time, up to and including retirement.
Deferred taxes
A non-cash expense that provides a source of free cash flow. Amount allocated during the period to cover
tax liabilities that have not yet been paid.
Deficit
An excess of liabilities over assets, of losses over profits, or of expenditure over income.
Defined benefit plan
A pension plan in which the sponsor agrees to make specified dollar payments to qualifying employees. The
pension obligations are effectively the debt obligation of the plan sponsor. Related: defined contribution plan
Defined contribution plan
A pension plan in which the sponsor is responsible only for making specified contributions into the plan on
behalf of qualifying participants. Related: defined benefit plan
Delayed issuance pool
Refers to Mortgage Backed Securities (M.B.S.s) that at the time of issuance were collateralized by
seasoned loans originated prior to the MBS pool issue date.
|
