Neutral period
In the Euromarket, a period over which Eurodollars are sold is said to be neutral if it does not start or end on either a Friday or the day before a holiday. |
Similar financial terms
Vega-neutral portfolioA vega-neutral portfolio has an asset combination which implies a vega of zero.
Risk neutral
Insensitive to risk.
Monetary neutrality
A proposition that in the long run, a percentage rise in the money supply is matched by the same percentage rise in the price level, leaving unchanged the real money supply and all other economic variables such as interest rates.
This theory, a core belief of classical economics, was first put forward in the 18th century by David Hume. He set out the classical dichotomy that economic variables come in two varieties, nominal and real, and that the things that influence nominal variables ...
Workout period
Realignment period of a temporary misaligned yield relationship that sometimes occurs in fixed income markets.
Annualized holding period return
The annual rate of return that when compounded t times, would have given the same t-period holding return as actually occurred from period 1 to period t.
Waiting period
Time during which the SEC studies a firm's registration statement. During this time the firm may distribute a preliminary prospectus.
T-period holding-period return
The percentage return over the T-year period an investment lasts.
Subperiod return
The return of a portfolio over a shorter period of time than the evaluation period.
Net period
The period of time between the end of the discount period and the date payment is due.
Multiperiod immunization
A portfolio strategy in which a portfolio is created that will be capable of satisfying more than one predetermined future liability regardless if interest rates change.
Compounding period
The length of the time period (for example, a quarter in the case of quarterly compounding) that elapses before interest compounds.
Credit period
The length of time for which the customer is granted credit.
Grace period
The time period stipulated in most loan contracts and insurance policies in which a late payment will not result in default or cancellation.
