Kamikaze Defense
Kamikaze Defense A kamikaze defense is a method for deterring a potential acquirer from purchasing a company. How it works: Kamikaze defense is named after the suicide attacks of Japanese pilots during World War II. […]
January Effect
What is the January Effect? A recurring trend in the stock market during the month of January (mostly the first half of the month) wherein stock prices tend to go up. Towards the end of […]
Z
Z-Bond A CMO tranche that resembles a Zero Coupon Bond and ordinarily has neither the first, nor the last claim on the CMO’s underlying cash flows and asset value. Hence, the Z-Bond has significant Credit […]
Y
Yankee market The U.S. foreign market. The market in the U.S. for securities that non U.S . companies and governments issue. Example: Some shares of Nomura Securities trade in New York in the Yankee market. […]
X
Xerxes The sensitivity of Convexity to a change in yield. The “Convexity” of Modified Duration The third derivative of a financial instrument’s value with respect to its yield. Hedging so that Xerxes equals zero is […]
W
Warrant An option that a corporation issues, with its own shares as the underlying asset. The crucial implication is that exercise of the option changes the number of claims against the corporation’s assets. Thus, the […]
V
Value date 1. In the Eurodeposit and FX markets, the delivery date for funds traded. For the spot market it would be the spot date, ordinarily two business days after the transaction. For the forward […]
U
U.K. Mips Goldman, Sachs’s variation on its Mips structure, tailored to maximize its advantages for the UK market in ways that the U.S. government wouldn’t allow. Grand Metropolitan Delaware (limited partnership) issued 20 million “preferred […]
T
Tailed calendar spread A calendar spread trade involving one long position and one short position of different sizes (in contracts). Tandem spread A spread consisting of calendar spreads in two commodities. Tanker Freight Swap A […]
S
Samurai market Japan’s foreign market. The market in Japan for securities that non Japanese companies and governments issue. Example: Some shares of General Motors trade in the Samurai market. Scalper, Scalp-beggar A exchange floor trader […]
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