Safety cushion
In a contingent immunization strategy, the difference between the initially available immunization level and the safety-net return. |
Similar financial terms
Safety-net returnThe minimum available return that will trigger an immunization strategy in a contingent immunization strategy.
Margin of safety
With respect to working capital management, the difference between (a) the amount of longterm financing, and (b) the sum of fixed assets and the permanent component of current assets.
Redemption cushion
The percentage by which the conversion value of a convertible security exceeds the redemption price (strike price).
Cushion bonds
High-coupon bonds that sell at only at a moderate premium because they are callable at a price below that at which a comparable non-callable bond would sell. Cushion bonds offer considerable downside protection in a falling market.
