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The report included nine recommendations, one of which was that "Delivery versus payment (DvP) should be the method for settling all securities transactions with systems in place by 1992." In December 1990, the Committee on Payment and Settlement Systems (CPSS), consisting of representatives from the major central banks, initiated further study ...
In finance, a spot contract, spot transaction, or simply spot, is a contract of buying or selling a commodity, security or currency for immediate settlement (payment and delivery) on the spot date, which is normally two business days after the trade date. The settlement price (or rate) is called spot price (or spot rate).
In banking and finance, clearing refers to all activities from the time a commitment is made for a transaction until it is settled.This process turns the promise of payment (for example, in the form of a cheque or electronic payment request) into the actual movement of money from one account to another.
A hybrid security is a single financial product that combines different types of financial securities, or has features of multiple kinds of securities. Typically, this means that the security has ...
A mortgage-backed security is a type of financial asset, somewhat like a bond (or a bond fund). ... For example, it can create a “safer” class of bonds that are paid before other classes of ...
Settlement involves the delivery of securities from one party to another. Delivery usually takes place against payment known as delivery versus payment, but some deliveries are made without a corresponding payment (sometimes referred to as a free delivery, free of payment or FOP [4] delivery, or in the United States, delivery versus free [5]).
Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations (or other non-debt assets which generate receivables) and selling their related cash flows to third party investors as securities, which may be described as bonds, pass-through securities, or collateralized debt ...
An example of an asset which pays discrete income might be a stock, and an example of an asset which pays a continuous yield might be a foreign currency or a stock index. For investment assets which are commodities, such as gold and silver, storage costs must also be considered. Storage costs can be treated as 'negative income', and like income ...