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PONV

It stands for point of non-viability; a situation where a bank or other regulated institutions experience serious financial stress due...

CAPM

Introduced by Jack Treynor (1961, 1962), William Sharpe (1964), John Lintner (1965) and Jan Mossin (1966) independently, and capitalized on...

NCO

It stands for net charge-off; the difference between the amount of gross charge-offs (GCO), or simply charge-offs, and any recoveries...

FCDO

It stands for forward-starting CDO; a single-tranche CDO (an exotic CDO product) with a premium starting at a pre-specified time…

PCL

An acronym for provision for credit losses; a provision that is created (set aside) by an entity, as an amount...

ACL

It stands for allowance for credit losses; an allowance that constitutes an estimate of a debt/ obligation (credit extended to...

IFL

It stands for inverse floating rate tranche; a tranche that is created from the collateral tranche (in a CMO structure),...

FL

It stands for floating rate tranche; a CMO tranche (or a tranche in a similar structure) in which the monthly...

ERC

It stands for event risk covenant; a bond provision that requires that the bond is turned in, or redeemed, at…

CTM Option

An abbreviation for close-to-the-money option; an option contract in which the underlying’s market price is very near to the strike…