The profit equalization reserve (PER) is the amount appropriated by an Islamic bank or financial institution out of the mudaraba...

Parties with short positions in bond futures contracts usually have many choices to make with respect to making delivery of...

A murabaha to the purchase orderer (MPO) is a form of murabaha in which the potential buyer (purchaser orderer) instructs...

Leverage is typically measured by relating a company’s total assets to its equity. The measurement of leverage is straightforward if...

A floating-rate loan can be synthetically constructed using interest rate swaps. A debtor with a fixed-rate loan can convert his...

Zakah (زكاة) is Arabic for obligatory charity (the third pillar of Islam). It constitutes a portion of wealth prescribed by...

A credit derivative is a tool designed to transfer credit risk between two parties: a credit risk seller and a...

In a newly issued swap, the fixed rate equals the swap rate. When principal amounts are added to both legs...

In the context of banking, novation refers to a method that is used by a lender to transfer a loan...

A typical investment bank has a number of sources of revenue, the most common of which are: Trading: an investment...