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Floating Rate Debt

Definitions

Floating rate debt contains a variable coupon that is commonly equal to a money market reference rate, or a federal funds rate plus a specified spread. Although the spread remains ...

Guarantee

Definitions

Credit enhancement by an issuer (in this case, either the investor or the fund).

Hedged %

Definitions

The percentage of floating rate debt that has been transformed into fixed rate debt through interest rate swaps or other types of derivatives.

hedging instruments

Definitions

A financial instrument whose cash flows should offset changes in the cash flows of a designated hedged item (asset, liability, or investment).

Industrial Revenue Bonds

Definitions

Also known as low floater tax exempt bonds or tax exempt real estate bonds. Originally used as a vehicle by which municipalities could encourage socially responsible investing in t ...

Interest rate hedging ratio

Definitions

Percentage of the nominal value of debt excluding shareholder loans of which the interest rate risk is hedged through derivatives.

Zinssicherungsquote

Definitions

Prozentualer Anteil am Nominalwert der Verbindlichkeiten ohne Aktionärsdarlehen, dessen Zinsrisiko durch Derivate abgesichert ist.

Interest Rate Swaps

Definitions

A type of hedging where two parties exchange a floating interest rate for a fixed interest rate or vice-versa

Portfolio Interest Service Coverage Ratio

Definitions

Projected NOI over the following four quarters as a ratio of projected interest payments on bank (not shareholder) loans over the same period. This is a portfolio metric which may ...

Letter of credit (LOC)

Definitions

Commitment made by a bank or other party (the "issuer"), upon the application of the issuer's client (the "applicant"), to pay the amount of the letter of c ...

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