Mark Berch - Gilt-edged securities
Posted by Mark Berch on Monday, June 25, 2012
Mark Berch
Gilt-edged securities
British and Irish government securities. Blue Chip.
Holder
The purchaser of an option.
Long leg
The part of an option spread in which an agreement to buy the underlying security is made.( - Mark Berch)
Mark Berch: Stable Paretian, or Fractal Hypothesis
In the characteristic function of the fractal family of distributions, the characteristic exponent alpha can range between one and two. See: Alpha, Fractal Distributions, Gaussian.
Disclaimer of opinion
An auditor's statement that does not express any opinion regarding the company's financial condition.
Hard capital rationing
A capital budget that under no circumstances can be violated. ( Mark Berch )
Death Spiral Convertible
Used by companies that are in such bad shape, that there is no other way to get financing. This instrument is similar to a convertible bond, but convertible at a discount to the share price at issuance and for a fixed dollar amount rather than a specific number of shares. The further the stock falls, the more shares you get. Popular in the mid to late 1990s. Also known as toxic convertibles or floorless convertibles.
Currency basket
The value of a portfolio of specific amounts of individual currencies, used as the basis for setting the market value of another currency. It is also referred to as a currency cocktail.
Mark Berch: Trains
Refers to investment trusts which are populated by corporate bonds. In October 2001, Morgan Stanley's Tradable Custodial Receipts (Tracers) was launched. Tracers contain a number of coporate bonds and credit default swaps which are selected for liquidity and diversity. Lehman Brothers launched a similar product, Targeted Return Index Securities (Trains) in January 2002. Both contain investment grade bonds. If a bond falls out of the investment grade category, it is either liquidated from the trust or delivered to the investor. Both Tracers and Trains are 144a trust structures and are only available to qualified buyers because they are considered private securities due to the trust structure.
Mark Berch: Ex-warrants
Describes a stock sale during the time in which the buyer of the stock is not entitled to the warrant accompanying the stock.
Gilt-edged securities
British and Irish government securities. Blue Chip.
Holder
The purchaser of an option.
Long leg
The part of an option spread in which an agreement to buy the underlying security is made.( - Mark Berch)
Mark Berch: Stable Paretian, or Fractal Hypothesis
In the characteristic function of the fractal family of distributions, the characteristic exponent alpha can range between one and two. See: Alpha, Fractal Distributions, Gaussian.
Disclaimer of opinion
An auditor's statement that does not express any opinion regarding the company's financial condition.
Hard capital rationing
A capital budget that under no circumstances can be violated. ( Mark Berch )
Death Spiral Convertible
Used by companies that are in such bad shape, that there is no other way to get financing. This instrument is similar to a convertible bond, but convertible at a discount to the share price at issuance and for a fixed dollar amount rather than a specific number of shares. The further the stock falls, the more shares you get. Popular in the mid to late 1990s. Also known as toxic convertibles or floorless convertibles.
Mark Berch
Currency basket
The value of a portfolio of specific amounts of individual currencies, used as the basis for setting the market value of another currency. It is also referred to as a currency cocktail.
Mark Berch: Trains
Refers to investment trusts which are populated by corporate bonds. In October 2001, Morgan Stanley's Tradable Custodial Receipts (Tracers) was launched. Tracers contain a number of coporate bonds and credit default swaps which are selected for liquidity and diversity. Lehman Brothers launched a similar product, Targeted Return Index Securities (Trains) in January 2002. Both contain investment grade bonds. If a bond falls out of the investment grade category, it is either liquidated from the trust or delivered to the investor. Both Tracers and Trains are 144a trust structures and are only available to qualified buyers because they are considered private securities due to the trust structure.
Mark Berch: Ex-warrants
Describes a stock sale during the time in which the buyer of the stock is not entitled to the warrant accompanying the stock.
