negative interest rate
11Negative Gap — A situation where a bank s interest sensitive liabilities exceed its interest sensitive assets. A negative gap is not necessarily a bad thing, because if interest rates decline, the bank s liabilities would get repriced at lower interest rates… …
12Negative Points — A cash rebate paid by lenders to a mortgage broker or the borrower for a mortgage with an interest rate above the lender s par interest rate. When the rebate is paid to the mortgage broker, it is known as a yield spread premium, and is part of… …
13interest — Synonyms and related words: absolute interest, absorb, absorption, accent, accrued dividends, accumulated dividends, acquisitiveness, activities, activity, advantage, advocacy, aegis, affair, affairs, affect, affect the interest, agacerie,… …
14Interest-only loan — An interest only loan is a loan in which for a set term the borrower pays only the interest on the principal balance, with the principal balance unchanged. At the end of the interest only term the borrower may enter an interest only mortgage, pay …
15Negative Carry Pair — A forex trading strategy in which a long position is held on a low interest currency and a short position is held on a high interest currency. A negative carry pair is the inverse of a positive carry. Because there is a cost with maintaining the… …
16Negative Gearing — Borrowing money to buy an investment asset without receiving enough income from the investment to cover the interest expenses and other costs inolved in maintaining it. Depending on the investor s home country, the shortfall between income earned …
17Interest discount/negative spread — The negative difference between the interest rate payable/receivable and the agreed upon basic rate. See also Interest premium …
18negative convexity — A phrase use to describe a particular type of instability in the duration of an instrument. Negative convexity means that as yields rise, duration rises and as yields fall, duration falls. Graphically, this is seen as a price/yield curve for… …
19Interest Cost — The cumulative sum of the amount of interest paid on a loan by a borrower. This amount should include any points paid to reduce the interest rate on a loan, since points are in effect pre paid interest. Additionally, any negative points or… …
20Negative Covenant — A bond covenant preventing certain activities, unless agreed to by the bondholders. Negative covenants are written directly into the agreement creating the bond issue, are legally binding on the issuer, and exist to protect the best interests of… …
