Collateral Management

Glossary of Terms

This glossary contains many of the terms mentioned within the book, but additionally contains frequently used terms not used within the book, but which may be of use to the reader. Words and phrases in italics within the description of terms indicate that an associated glossary item exists.

Terms are not only defined, but where appropriate the relevance to collateral management is described to enable the reader to place the term in its collateral management context.

Accrued Days

The number of days that have elapsed since the most recent Coupon Payment Date.

Accrued Interest

On Interest-Bearing Bonds, the accumulated interest since the most recent Coupon Payment Date and payable at the next coupon payment date. When a bond is used as Collateral, it’s full market value must include the current value of accrued interest.

Agency Capacity

A method of trading in which a firm acts as an intermediary between two parties, typically charging Commission for its services. Also known as a Broker.

Agency Lending

See Lending Agent.

AIFMD

Acronym for Alternative Investment Fund Managers Directive

Alternative Investment Fund

In general terms, a collective investment scheme that invests in non-traditional asset types (e.g. Derivatives), and/or employs non-traditional investment strategies.

Alternative Investment Fund Managers Directive

European regulatory framework governing the activities of managers of Alternative Investment Funds. Commonly known as AIFMD.

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