CHAPTER 5 Spot Lending

“Neither a borrower nor a lender be; For loan oft loses itself and a friend, and borrowing dulls the edge of husbandry.”

William Shakespeare

Glossary of Terms

Loan: The extension of credit via a typically untraded and illiquid debt contract.

Security: A financial claim, debt, or equity, which may be traded or untraded.

COD: Cash on delivery as a method of payment for goods received.

Commercial Paper: Unsecured debt, offered as a short-maturity (less than 270 days) security by corporations.

T-bills, T-notes, and T-bonds: Debt securities of varying maturities issued by the U.S. government through the U.S. Treasury Department; hence, “T” for Treasury.

FHLB: Federal Home Loan Bank. The Federal Home Loan Bank System, headed ...

Get Contemporary Financial Intermediation, 2nd Edition now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.