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sohomghosh
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FinRAD_Financial_Readability_Assessment_Dataset

Dataset card Data Studio Files Community
1
terms
stringlengths
1
156
definitions
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4.2k
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stringclasses
15 values
assigned_readability
int64
0
1
flesch_reading_ease
float64
-301.79
121
flesch_kincaid_grade
float64
-3.5
55.6
smog_index
float64
0
26.5
coleman_liau_index
float64
-33.81
51.4
automated_readability_index
float64
-6.9
65
dale_chall_readability_score
float64
0.1
35.3
linsear_write_formula
float64
-0.5
73
gunning_fog
float64
0.4
56
RETROCEDANT
A REINSURER that CEDES RISK to another REINSURER through a RETROCESSION CONTRACT.
palgrave
0
42.38
10.3
0
15.18
12
10.81
9
11.47
RETROCEDE
The process of transferring RISK from one REINSURER to another reinsurer through a RETROCESSION CONTRACT.. See also CEDE,RETROCEDANT, RETROCESSIONAIRE.
palgrave
0
36.45
10.5
0
20.04
16.3
11.59
7.25
12.22
RETROCESSION
A form of REINSURANCE CONTRACT that allows a REINSURER to transfer designated RISKS to another reinsurer in order to manage and diversify its PORTFOLIO of REINSURANCE exposures. See alsoRETROCEDANT, RETROCESSIONAIRE.
palgrave
0
22.41
13.9
0
17.68
15.4
11.22
13
16.67
RETROCESSIONAIRE
A REINSURER accepting RISK from another REIN- SURER through a RETROCESSION CONTRACT. See also RETROCEDANT.LOSS PORTFOLIO TRANSFER, RETROSPECTIVE FINITE POLICY.
palgrave
0
19.03
13.1
0
20.39
16.5
14.4
8
16
RETROSPECTIVE RATING
In INSURANCE, the process of adjust- ing PREMIUM rates to reflect actual current year losses. The retrospective approach is based on an initial premium plus an adjustment as loss experience is crystallized.
palgrave
0
38.32
11.9
0
13.4
12.3
13.31
12
15.15
RETROSPECTIVE SCRUTINY
A legal review by REGULATORS and other external parties of a bankrupt company’s history of financial deterioration, with a focus on the actions of the BOARD OF DIRECTORS during the period leading up to FINANCIAL DISTRESS.(i.e., a retrospective premium) or receive a refund (i.e., a retrospective refund), depending on the size of any losses that occur.
palgrave
0
-2.29
27.5
0
12.9
31.5
12.34
41
29.54
RETURN
The economic value generated by an INVESTMENT, generally expressed as a percentage of the amount of the original investment. Return may be generated through DIVIDENDS, COUPONS, and/or CAPITAL GAINS. Also known as RATE OF . See also DIVIDEND YIELD, EXPECTED , ON ASSETS, ON EQUITY, YIELD.
palgrave
0
34.93
11.1
13.4
11.87
10
9.57
8
13.49
RETURN ON ASSETS (ROA)
A measure of the RETURN a firm generates from the average ASSETS it holds during a reporting period. ROA can be com- puted via:where NIn is net income in period n, and ATAn is average total assets during period n.The higher the ratio, the greater the profitability of the assets.
palgrave
0
46.1
13
0
8.88
12.7
10.88
16.5
14
RETURN ON EQUITY (ROE)
A measure of the RETURN a firm generates for SHAREHOLDERS that have supplied CAPITAL. ROE, which is not adjusted for the effects of FINANCIAL RISK or OPERATING RISK, can be computed in dif- ferent forms, including:where NIn is NET INCOME in period n, Eqn is EQUITY in period n, EPSn is EARNINGS PER SHARE in period n, and BVEqPSn is BOOK VALUE equity per share in period n.The higher the ratio, the greater the profitability on invested equity. See alsoRISK-ADJUSTED RETURN ON CAPITAL.
palgrave
0
34.9
15.3
17.9
10.22
15.3
10.72
20.5
16.86
RETURN ON INVESTMENT (ROI)
A measure of the operating RETURN a firm generates from a core base of CAPITAL resources, computed as:where EBIT is EARNINGS BEFORE INTEREST AND TAXES, and TC is total cap- ital, or the sum of COMMON STOCK, PREFERRED STOCK, and LONG-TERM DEBT.The higher the ratio, the greater the operating profitability on capital resources.
palgrave
0
17.68
24
0
12.38
29.4
12.22
34.5
24.97
RETURN PERIOD
In INSURANCE, the average time within which an event of a particular magnitude is reached/exceeded. The return period, which is inversely proportional to frequency of occurrence, is commonly used in ana- lyzing CATASTROPHIC HAZARDS; the lower the frequency of occurrence, the longer the return period.
palgrave
0
23.26
15.6
0
14.97
16.7
11.77
18.75
19.67
RETURNED CHECK
A CHECK that is returned by a PAYEE to the BANK on which its drawn as a result of insufficient funds in the DRAWER’s CHECKING ACCOUNT. A returned check is generally subject to a BANK CHARGE.
palgrave
0
70.13
8
0
7.07
7.9
8.48
9
9.42
REVALORIZATION
Replacement of a CURRENCY with a new one, typically as an attempt to signal a new start for a national ECONOMY and financial sys- tem that has been impacted by high INFLATION and a weak currency.
palgrave
0
34.94
17.3
0
8.6
17.5
10.69
27
23.29
REVALUATION
The process of reassessing the value of an ASSET or LIABILITY to reflect a current value. Adjustments are carried through a revaluation RESERVE account.
palgrave
0
42.38
10.3
0
12.51
9.9
10.81
7
11.47
REVENUE
The amount of MONEY received by a company for selling its goods or services, taking account of any merchandise returned or other mon- ies refunded. The simplified revenue computation multiplies units sold by the price per unit. Also known as GROSS . See also COST OF GOODS SOLD.
palgrave
0
67.96
6.7
10.1
9.32
7.6
9.6
6.5
8.98
REVENUE AND CUSTOMS, HM
In the United Kingdom, the consolidated government authority formed in 2005 from the previously separate Inland Revenue and HM Customs and Excise authorities, now responsible for dir- ect TAX collection, VALUE-ADDED TAX collection, and customs and excise DUTIES collection.GENERAL OBLIGATION BOND.
palgrave
0
-3.99
24
0
18.81
28.6
12.99
31.5
23.23
REVERSAL
A TECHNICAL ANALYSIS charting pattern that depicts a pro- longed change in the upward or downward direction of a SECURITY orINDEX.
palgrave
0
41.7
12.7
0
12.53
13.8
12.2
14.5
14.11
REVERSE
See REPURCHASE AGREEMENT.
palgrave
0
9.21
12.7
0
16.95
16.2
14.31
1.5
14.53
REVERSE CONVERTIBLE BOND
A BOND that can be exchanged into COMMON STOCK at the OPTION of the ISSUER rather than the INVESTOR. The issuing company might choose to convert if it is attempting to decrease its LEVERAGE and improve its overall CREDITWORTHINESS. See alsoCONVERTIBLE BOND, MANDATORY CONVERTIBLE BOND.
palgrave
0
56.25
9.1
11.9
12.69
11.3
9.99
8.833333
11.33
REVERSE DUTCH AUCTION
An AUCTION which features one buyer and many sellers, and where the price rises from a low BID until a party agrees to sell at the stated price.
palgrave
0
68.44
10.7
0
6.85
12.3
8.97
14
11.2
REVERSE FLOATER SWAP
See INVERSE FLOATER SWAP.
palgrave
0
92.8
1.3
0
7.25
6.5
15.68
1
1.6
REVERSE FLOATING RATE NOTE
See INVERSE FLOATING RATE NOTE.
palgrave
0
83.32
2.9
0
8.44
6.5
10.2
1.5
2
REVERSE HEAD AND SHOULDERS
A TECHNICAL ANALYSIS chart- ing formation of a SECURITY or INDEX that features a supporting priceplateau, followed by a dip, and a reversal to a second supporting price plateau; the formation of a reverse head and shoulders might then lead to a BREAKOUT on the upside or downside.See also HEAD AND SHOULDERS.INDEX PRINCIPAL SWAP, VARIABLE PRINCIPAL SWAP.
palgrave
0
5.16
26.7
0
13.13
31.7
11.73
41.5
28.41
REVERSE KNOCK-IN OPTION
A BARRIER OPTION that creates an under- lying IN-THE-MONEY option once the BARRIER is breached, i.e., the barrier is above the STRIKE PRICE in the case of a reverse knock-in CALL, and below the strike in the case of the reverse knock-in PUT. Also known as KICK-IN OPTION. See also REVERSE KNOCK-OUT OPTION.
palgrave
0
70.43
7.8
8.8
8.58
10
6.6
8.833333
7.83
REVERSE KNOCK-OUT OPTION
A BARRIER OPTION that extinguishes an underlying IN-THE-MONEY option once the BARRIER is breached, i.e., the barrier is above the STRIKE PRICE in the case of a reverse knock-out CALL, and below the strike in the case of the reverse knock-out PUT. Also known as KICK- OUT OPTION. See also REVERSE KNOCK-IN OPTION.
palgrave
0
61.97
9
10.5
9.34
10.5
6.9
10.5
9.34
REVERSE LEVERAGED BUYOUT (LBO)
A transaction where a company that has been taken private through a LEVERAGED BUYOUT (LBO) is floated pub- licly through an INITIAL PUBLIC OFFERING. A reverse LBO generally occurs after the company has been streamlined and operating efficiencies have been created by the LBO management group.
palgrave
0
39.67
13.4
0
13.52
15.4
10.96
16
15.29
REVERSE MERGER
See REVERSE TAKEOVER.
palgrave
0
93.81
0.9
0
9.23
9.9
14.31
0.5
1.2
REVERSE MORTGAGE
A MORTGAGE where the BORROWER receives pay- ments (monthly, lump sum, or as a CREDIT LINE) from the LENDER based on accumulated EQUITY in the property. The reverse mortgage comes due if the property is sold, required payments are not made, or the property deteriorates as a result of lack of care. In general, the transaction terminates when the last surviving borrower dies or sells the home.
palgrave
0
48.84
12
14.6
10.39
12.7
9.93
15.166667
13.7
REVERSE REPO
See REVERSE REPURCHASE AGREEMENT.
palgrave
0
33.58
9.6
0
18.85
15.9
15.68
2
11.6
REVERSE TAKEOVER
The ACQUISITION by a smaller company of a lar- ger company, or the acquisition of PUBLIC COMPANY (generally a SHELL COMPANY) by a PRIVATE COMPANY in order to gain a STOCK EXCHANGE listing. Also known as REVERSE MERGER.
palgrave
0
43.73
11.9
0
9.46
10.5
8.32
13.5
9.71
REVERSE TO MATURITY
A REVERSE REPURCHASE AGREEMENT with a MATURITY equal to the maturity of the underlying ASSET being lent; a reverse to maturity often involves collateralization of high COUPON SECURITIES that the holder does not want to sell.
palgrave
0
18.02
19.7
0
13.41
21.3
10.25
25
19.96
REVERSE TYING
A practice where a BANK or INVESTMENT BANK agrees to purchase goods or services from a company in exchange for the company’s agreement to award it with lucrative fee-based NEW ISSUE or CORPORATE FINANCE MANDATES. In some jurisdictions the practice is illegal, as it constitutes a violation of fair trading practices. See also TYING.
palgrave
0
53.21
10.3
13
11.83
11.9
10.96
12
13.13
REVOLVER
See REVOLVING CREDIT FACILITY.
palgrave
0
-8.73
15.5
0
14.5
12.4
15.68
3
21.6
REVOLVING BANK FACILITY
See REVOLVING CREDIT FACILITY.
palgrave
0
-8.73
15.5
0
14.5
12.4
15.68
3
21.6
RFP
See REQUEST FOR PROPOSAL.
palgrave
0
50.5
7.2
0
7.25
6.5
11.73
2
11.6
RHO
A measure of the change in the value of an OPTION for a change in the RISK-FREE RATE, with all other variables held constant. The rhos of the CALL OPTION and PUT OPTION under the BLACK-SCHOLES MODEL are given by:)= tXe−rf t N( −d)where+−σ22σ tS is the stock price, X is the STRIKE PRICE, t is the time to MATURITY, rf is the risk-free rate, σ2 is the VARIANCE, and where the N value of N(d2) can be obtained from a standard table of PROBABILITY functions.The rhos of LONG and SHORT puts and calls are shown as:See also DELTA, GAMMA, GREEKS, VEGA, THETA.
palgrave
0
44.58
19.8
0
7.62
24.9
11.25
26.5
21.38
RIBA
INTEREST payable or receivable on a CONTRACT, which is pro- hibited under the rules of ISLAMIC FINANCE. See also GHARAR.
palgrave
0
52.87
8.4
0
9.37
7.4
12.03
6
12
RICH
An ASSET that is perceived by market participants to be expen- sive compared with alternatives (i.e., the SPREAD is too narrow in the case of a risky BOND or the price too high in the case of a COMMON STOCK, CURRENCY, or COMMODITY). Those believing the asset is rich will seek to profit by selling it, either directly or through an ARBITRAGE transaction. See also CHEAP.
palgrave
0
57.61
10.7
12.5
8.47
11.3
9.27
13.666667
13.65
RIDER
An ENDORSEMENT to an INSURANCE POLICY that modifies the provisions of coverage. The terms contained in the rider supersede those con- tained in the original policy.
palgrave
0
41.36
10.7
0
12.17
10.3
11.57
11
17.51
RIDING THE CURVE
See ROLLING DOWN THE CURVE.
palgrave
0
117.16
-1.9
0
3.8
2.7
7.04
1.5
2
RIGHT OF SUBSTITUTION
The legal ability for a BORROWER and/or LENDER to replace COLLATERAL securing a financial transaction with other ASSETS that feature at least the same minimum value and marketability.
palgrave
0
17.68
17.8
0
14.92
18.8
12.36
22
22.63
RIGHTS OFFERING
See RIGHTS ISSUE.
palgrave
0
93.81
0.9
0
1.52
3.6
14.31
0.5
1.2
RIGHTSIZING
The process of restructuring corporate operations, typ- ically through employee redundancies, ASSET sales, and/or discontinuation of certain products, services, or business divisions.
palgrave
0
-1.63
19
0
23.32
24.2
14.78
18
21.53
RING-FENCING
The process of legally or structurally isolating a portion of a company’s ASSETS or business operations into a separate SUBSIDIARY or man- agement unit in order to allow it to file for BANKRUPTCY or to be sold or wound down.
palgrave
0
30.88
18.9
0
9.88
20.4
10.36
26
21
RING TRADING
A TRADING mechanism used on EXCHANGES that still feature physical, rather than electronic, trading, where BROKERS, DEALERS, and/or MARKET MAKERS assemble at appointed times in a “ring” to make a market in a particular ASSET. Also known as CALLOVER. See also OPEN OUTCRY.
palgrave
0
56.96
8.9
11.2
11.65
10.7
10.22
8.166667
11.3
RIO TRADE
A large TRADE executed in an attempt to reverse losses on existing positions; thus named because if the strategy fails the trader may be tempted to flee, e.g. take the next plane to Rio.
palgrave
0
53.89
14.2
0
8.54
16.8
12.75
21
18.31
RISING BOTTOM
A TECHNICAL ANALYSIS charting figure of a SECURITY or INDEX depicting rising prices and an increasing support level; a rising bot- tom is generally considered to be a BULLISH signal.See also ASCENDING TOP, DESCENDING BOTTOM, FALLING TOP.
palgrave
0
17
20.1
0
13.88
22.6
13.15
27.5
24.53
RISK
Uncertainty or unpredictability associated with a future outcome or event. From a corporate and financial perspective, risk can be broadly divided into SPECULATIVE and PURE , and may also be classed as FINANCIAL and OPERATING .
palgrave
0
11.92
15.8
0
14.5
13.7
11.45
14
17.39
RISK-ADJUSTED ASSETS
See RISK-WEIGHTED ASSETS.where NIn is NET INCOME in period n and RAEqn is the RISK-ADJUSTED CAPITAL allocated in support of the INCOME-producing business in period n. An alternative computation adjusts the returns for riskiness and leaves capital unadjusted.
palgrave
0
26.81
14.2
0
15.55
15.5
12.06
15
16.02
RISK AVERSION
A characteristic of an individual or institution that prefers less, rather than more, RISK, and is willing to pay a price or accept a lower RETURN for protection/mitigation (through, for example, INSURANCE, DERIVATIVES, or other methods of RISK TRANSFER or HEDGING). See alsoRISK NEUTRALITY, RISK SEEKING.
palgrave
0
31.21
14.6
0
14.16
16.7
10.61
15.5
17.03
RISK BUDGETING
A process of allocating RISK CAPITAL within an INVESTMENT PORTFOLIO, typically based on principles related to MODERN PORTFOLIO THEORY. Risk budgeting, through use of marginal and cumula- tive risk and RETURN measures, as well as tools such as MEAN VARIANCE OPTIMIZATION, seeks to balance the potential for losses with the possibility of generating returns within the PORTFOLIO CONSTRUCTION framework.
palgrave
0
16.15
18.3
0
16.26
20.6
12.86
23.75
21.97
RISK CAPACITY
The ability for an institution to accept the transfer of RISK from another party. Risk capacity is generally based on an institution’s finan- cial resources, expertise, and operating mandate.
palgrave
0
31.38
12.5
0
13.74
12.3
11.98
11.25
15.46
RISK FACTOR
(1) A source of RISK, including one of a financial or oper- ating nature. (2) A named risk included in FOOTNOTES to the FINANCIAL STATEMENTS of a company, an OFFERING MEMORANDUM, PROSPECTUS,REGISTRATION STATEMENT, or other INVESTMENT offering intended to warn potential INVESTORS or STAKEHOLDERS on the possibility of loss. Risk factors may include MARKET RISKS, CREDIT RISKS, litigation, and so forth.
palgrave
0
23.6
17.5
0
14.28
20.2
12.66
22.75
20.07
RISK FINANCING
The general class of RISK MANAGEMENT products and mechanisms that seeks primarily to shift the timing of RISK-related losses rather than their permanent transfer to a third party; an institution engaged in risk financing simply delays funding of losses until a future period. See alsoFINITE INSURANCE, FINITE REINSURANCE.
palgrave
0
30.2
15
0
15.5
17.5
12.72
18
18.77
RISK-FREE RATE
The DEFAULT-free BENCHMARK INTEREST RATE accorded to sovereign nations with the strongest CREDIT RATINGS. The risk-free rate is often used as the base reference rate for the pricing of credit-risky LOANS, BONDS, and DERIVATIVES. See also DISCOUNT RATE, RISK PREMIUM.
palgrave
0
49.52
9.7
11.9
13.44
12
11.4
8
11.32
RISK IDENTIFICATION
The first stage of the RISK MANAGEMENT PROCESS, where a firm defines its actual, perceived, or anticipated FINANCIAL RISKS and OPERATING RISKS. See also RISK MANAGEMENT, RISK MONITORING, RISK QUANTIFICATION.
palgrave
0
39.33
11.5
0
15.19
14
11.22
11.5
15.33
RISK MANAGEMENT
The third stage of the PROCESS, where a firm decides whether to control, retain, eliminate, or expand its FINANCIAL RISKS and OPERATING RISKS. This process may be guided by cost-benefit analysis, available financial resources, and corporate operat- ing directives. See also RISK IDENTIFICATION, RISK MONITORING, RISK QUANTIFICATION.
palgrave
0
38.62
11.8
14.6
16.12
15.1
12.48
11.833333
15.64
RISK MANAGEMENT PROCESS
A four-stage process centered on iden- tifying, quantifying, managing, and monitoring FINANCIAL RISK and OPERATING RISK. See also RISK IDENTIFICATION, RISK MANAGEMENT, RISK MONITORING, RISK QUANTIFICATION.
palgrave
0
15.98
14.3
0
19.76
17.7
12.18
11.5
19.05
RISK MANAGEMENT TECHNIQUES
A broad group of methods, including LOSS CONTROL, LOSS FINANCING, and RISK REDUCTION, which companies and sovereign entities often use to manage FINANCIAL RISKS and OPERATING RISKS.
palgrave
0
27.15
16.2
0
15.26
19.1
12.58
21.5
22.65
RISK MARGIN
See RISK PREMIUM.
palgrave
0
59.97
5.6
0
1.52
3.6
14.31
1.5
14.53
RISK MONITORING
The fourth stage of the RISK MANAGEMENT PROCESS, where a firm tracks and reports its RISK exposures and communicates them to internal and external STAKEHOLDERS. See also RISK IDENTIFICATION, RISK MANAGEMENT, RISK QUANTIFICATION.
palgrave
0
46.27
10.9
0
16.01
14.8
10.68
12.75
16.3
RISK NEUTRAL VALUATION
A framework, developed by Cox, Ross, and Rubenstein and used in certain OPTION pricing models, which indicates that as long as the expected RETURN and DISCOUNT RATE used as inputs reflect the same degree of RISK AVERSION, they have no impact on the price of an option.
palgrave
0
40.69
19.3
0
10.29
24.3
11.68
26.5
21.35
RISK NEUTRALITY
A characteristic of an individual or institution that accepts the average RETURN or EXPECTED VALUE available on a givenINVESTMENT opportunity, is indifferent to different choices that provide the same return, or requires no excess return for assuming a risk. See also RISK AVERSION, RISK SEEKING.
palgrave
0
23.26
15.6
0
14.86
16.2
11.07
16.25
17
RISK PHILOSOPHY
A formal expression of a firm’s view on RISK, including its corporate goals related to risk, the focus of its risk activities, and STAKEHOLDER expectations regarding risk activities. See also RISK TOLERANCE.
palgrave
0
38.32
11.9
0
13.4
12.5
11.34
13
17.65
RISK POOLING
A practical implementation of DIVERSIFICATION, and a fundamental mechanism of the RISK MANAGEMENT markets and the INSURANCE mechanism, based on the concept that independent (i.e., uncor- related) risks can be combined to reduce the overall level of risk. Also known as POOLING.
palgrave
0
24.78
15
0
13.92
15.5
12.2
15.5
16.97
RISK PREMIUM
(1) A payment made by a RISK-averse firm to a third party to secure ex-ante protection against financial loss from a specific risk exposure.(2)The MARGIN added to the RISK-FREE RATE to compensate for the risk of DEFAULT; the sum of the two yields the DISCOUNT RATE, or the total rate used to discount the value of future risky cash flows. (1) See also PREMIUM.(2)Also known as RISK MARGIN.
palgrave
0
19.38
27.5
0
9.95
34.9
12.35
40
30.73
RISK QUANTIFICATION
The second stage of the RISK MANAGEMENT PROCESS, where a firm uses mathematical, statistical, or actuarial techniques to estimate the economic impact of FINANCIAL RISKS and OPERATING RISKS on its operations. See also RISK IDENTIFICATION, RISK MANAGEMENT, RISK MONITORING.
palgrave
0
17.84
15.6
0
16.3
16.4
11.89
15.75
19.08
RISK RETENTION
A LOSS FINANCING technique where a company chooses to preserve, rather than transfer or HEDGE, a portion of its FINANCIAL RISK and/or OPERATING RISK. See also HEDGING, RETENTION, GROUP, RISK TRANSFER, SELF-INSURANCE.
palgrave
0
38.32
11.9
0
14.15
13.8
10.84
11
12.65
RISK RETENTION GROUP
A RETENTION vehicle, conceptually similar to a GROUP CAPTIVE, where several companies with similar RISKS combine and then spread their exposures via RISK POOLING.
palgrave
0
21.74
16.2
0
15.9
17.8
12.72
20
19.6
RISK REVERSAL
(1) In the FOREIGN EXCHANGE market, the difference in VOLATILITY between OUT-OF-THE-MONEY CALL and PUT options with the same STRIKE and EXPIRY DATE, providing an indication of VOLATILITY SKEW and VOLATILITY SMILE. (2) See COLLAR.
palgrave
0
35.95
16.9
0
13.82
22.3
9.88
24.5
17.43
RISK SEEKING
A characteristic of an individual or institution that seeks RISK, reflecting a preference for an INVESTMENT with a higher expected RETURN and higher average risk. See also RISK AVERSION, RISK NEUTRALITY.
palgrave
0
30.36
12.9
0
14.03
12.6
11.03
12.25
17.81
RISK TOLERANCE
A quantitative expression of a firm’s view on RISK, gener- ally based on the amount it is willing to lose through exposure to FINANCIAL RISK and/or OPERATING RISK, the amount it can earn in assuming or pre- serving risk or must pay to transfer it, and the financial resources it has at its disposal to support risky activities. See also RISK PHILOSOPHY.
palgrave
0
48.47
14.2
0
9.88
16.3
10.27
20.5
18.21
RISK TRANSFER
A LOSS FINANCING technique where one party shifts an exposure to another party, paying a small, certain cost (such as a PREMIUM or fee) in exchange for coverage of uncertain losses. A standard INSURANCE POLICY is a common risk transfer mechanism. See also RISK RETENTION, HEDGING.
palgrave
0
47.49
10.4
13.6
10.72
10.3
10.92
11
13.95
RISK-WEIGHTED ASSETS (RWA)
ASSETS of a BANK that have been adjusted, or weighted, by specific RISK WEIGHTS that are designed to reflect their relative degree of RISK. The weights are governed by BASLE II for participating banks, and range from 0% for cash and high-quality GOVERNMENT SECURITIES to 100% for LOANS to less creditworthy borrowers. OFF-BALANCE SHEET contracts are included in the risk adjustment process. Also known as RISK-ADJUSTED ASSETS.
palgrave
0
54.42
9.8
13.4
12.53
12.2
11.07
11.625
12.69
RISK WEIGHTS
The assignment of weights to specific classes of RISKS, used in the computation of RISK-WEIGHTED ASSETS for CAPITAL ADEQUACY pur- poses under the STANDARDIZED APPROACH of BASLE II.Obligations of sovereigns:Obligations of corporates:Retail products (credit cards, auto loans, personal finance, and small business) risk weight: 75%Residential property risk weight: 35%Commercial real estate risk weight: 100%Other assets risk weight: 100%Cash risk weight: 0%
palgrave
0
-7.37
29.4
0
19.28
39.6
15.72
43.5
32.27
RMBS
See RESIDENTIAL MORTGAGE-BACKED SECURITY.
palgrave
0
-51.03
21.4
0
29
25.3
19.62
4
21.6
ROA
See RETURN ON ASSETS.
palgrave
0
75.88
3.7
0
1.45
1.8
7.78
1
1.6
ROADSHOW
A series of sales and marketing presentations held for INSTITUTIONAL INVESTORS by a company or sovereign entity preparing to launch a NEW ISSUE of SECURITIES; the focus of such meetings is on the ISSUER’S financial standing and prospects, and on a general review of the planned new issue. Roadshows are typically arranged and managed by the LEAD MANAGER and/or other institutions forming part of the SYNDICATE. Also known as DOG AND PONY SHOW. See also NONDEAL .
palgrave
0
43.73
11.9
13.8
11.66
12
10.19
13.125
13.39
ROE
See RETURN ON EQUITY.
palgrave
0
50.5
7.2
0
1.45
1.8
7.78
2
11.6
ROI
See RETURN ON INVESTMENT.
palgrave
0
50.5
7.2
0
7.25
6.5
7.78
2
11.6
ROLL DOWN
The process of exchanging one OPTION position for a new one with a lower STRIKE PRICE by closing out the original position. See also ROLL FORWARD, ROLL UP.
palgrave
0
65.73
7.6
0
8
7.1
8.84
8
9.89
ROLL FORWARD
The process of exchanging one OPTION position for a new one with a longer MATURITY date by closing out the original position. See alsoROLL DOWN, ROLL UP.
palgrave
0
66.23
7.4
0
8.75
7.5
9.57
8.25
11.33
ROLL UP
The process of exchanging one OPTION position for a new one with a higher STRIKE PRICE by closing out the original position. See also ROLL DOWN, ROLL FORWARD.
palgrave
0
65.73
7.6
0
8.63
7.6
8.84
8
9.89
ROLLER COASTER
See VARIABLE PRINCIPAL SWAP.
palgrave
0
50.5
7.2
0
11.6
10
15.68
2
11.6
ROLLING DOWN THE CURVE
An INVESTMENT strategy involv- ing the purchase of long-term BONDS in anticipation of CAPITAL GAINS as YIELDS decline. Also known as RIDING THE CURVE.
palgrave
0
59.3
8
0
11.59
9.5
10.81
7
9.8
ROLLOVER
(1) The process of renewing or reissuing a REPURCHASE AGREEMENT, REVOLVING CREDIT FACILITY, EVERGREEN, DEPOSIT, COMMERCIAL PAPER, ACCOUNT PAYABLE, or NOTE coming due. The rollover provides the DEBTOR with continued funding and the INVESTOR/ CREDITOR with continued RETURNS. (2) The simultaneous sale and purchase of FOREIGN EXCHANGE for one-day settlement, as in a SPOT NEXT or TOM NEXT transaction.
palgrave
0
33.07
16
0
15.27
20.5
12.06
21.25
19.26
ROUND LOT
A SECURITIES ORDER executed in the standard TRADING size associated with the security marketplace. Round lots typically carry lower COMMISSIONS or fees than small size ODD LOTS.
palgrave
0
32.39
12.1
0
14.14
11.6
11.32
10.25
15.77
ROUND TRIP
The purchase and sale of a SECURITY or EXCHANGE- TRADED DERIVATIVE, generally over a short period of time.
palgrave
0
36.28
12.7
0
10.15
10.8
9.79
13
16.09
ROUTER LOGIC
The mathematical instructions embedded in an ALGORITHM that indicate where to route each individual CHILD ORDER and/ or a PARENT ORDER in order to take advantage of available trading LIQUIDITY. See also ORDER GENERATION LOGIC, ORDER PLACEMENT LOGIC.
palgrave
0
26.81
14.2
0
14.45
14.4
9.98
14
17.07
RPI
See RETAIL PRICE INDEX.
palgrave
0
75.88
3.7
0
4.35
4.1
11.73
1
1.6
RUF
See REVOLVING UNDERWRITING FACILITY.
palgrave
0
-51.03
21.4
0
23.2
19.4
15.68
4
31.6
RULE 415 REGISTRATION
See SHELF REGISTRATION.
palgrave
0
34.59
9.2
0
13.12
13
9.05
1.5
14.53
RULES-BASED TRADING
See ALGORITHMIC TRADING.
palgrave
0
9.21
12.7
0
15.03
14.6
14.31
1.5
14.53
RUN
See BANK .
palgrave
0
77.91
2.9
0
-10.31
-1.7
0.1
0.5
0.8
RUN TO SETTLEMENT
Any EXCHANGE-TRADED DERIVATIVE CONTRACT that has been allowed to mature without being offset by an equal and opposite position or otherwise closed out, indicating that a physical or cash settlement will result.
palgrave
0
22.08
18.1
0
15.21
20.9
11.14
24
19.05
RUNOFF
Future CLAIMS that an INSURER expects to pay and which are already covered by RESERVES.
palgrave
0
64.71
8
0
9.97
9
10.7
7.5
8.67
RUNNING BROKER
An INTERMEDIARY BILL BROKER interposed between DISCOUNT HOUSES and bill holders, who brings the parties together but does not DISCOUNT bills.
palgrave
0
41.7
12.7
0
15.61
16.2
11.45
13.5
12.21
RUNNING THE BOOKS
The act of serving as a LEAD MANAGER in an UNDERWRITING.
palgrave
0
68.77
6.4
0
5.26
3.8
7.05
6.5
8.04
RUNNING YIELD
See FLAT YIELD.
palgrave
0
119.19
-2.7
0
-2.38
0.5
9.05
0.5
1.2
RWA
See RISK-WEIGHTED ASSETS.
palgrave
0
59.97
5.6
0
15.03
16.2
19.58
0.5
1.2