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 ...
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