covered
121Covered interest arbitrage — A portfolio manager invests dollars in an instrument denominated in a foreign currency and hedges his resulting foreign exchange risk by selling the proceeds of the investment forward for dollars. The New York Times Financial Glossary …
122covered foreign currency loan — A loan denominated in a currency other than that of the borrower s home country, for which repayment terms are prearranged through the use of a forward currency contract. Bloomberg Financial Dictionary …
123covered interest arbitrage — Occurs when a portfolio manager invests dollars in an instrument denominated in a foreign currency and hedges the resulting foreign exchange risk by selling the proceeds of the investment forward for dollars. Bloomberg Financial Dictionary …
124Covered Interest Rate Parity — The principle that the yields from interest bearing foreign and domestic investments should be equal when the currency market is used to predetermine the domestic currency payoff from a foreign investment. Bloomberg Financial Dictionary …
125covered writer — An investor who writes options only on stock that he or she owns, so that option premiums may be collected. Bloomberg Financial Dictionary …
126covered warrants — Warrants issued by a third party that is not the issuer of the underlying securities to which the warrant refers. The warrant issuer holds as many securities as would be required if all the warrants are exercised. Euroclear Clearing and… …
127covered warrant strike price — The price at which the investor may buy or sell the underlying during (if American style) or at the end (if European style) of the expiry period. Also referred to as expiry price and exercise price . It is known when the warrant is issued. London …
128Covered Bond — A bond which has other financial instruments, such as mortgage loans, pledged as security against default …
