embedded derivative instrument

embedded derivative instrument
Defined by FASB in FAS 133. An implicit or explicit term in a contract such as a bond, insurance policy, or lease, that meets the definition of a derivative even though the entire contract may not. Under FAS 133, the certain embedded derivatives must be separated from the host contract for purposes of reporting and accounting.
See embedded option and FAS 133. American Banker Glossary

Financial and business terms. 2012.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • embedded option — A provision in a financial contract or financial instrument, such as a loan or a security, that allows one party to change the timing or amount of one or more cash flows associated with that contract or instrument. An options feature of minor… …   Financial and business terms

  • Derivative (finance) — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • Interest rate derivative — An interest rate derivative is a derivative where the underlying asset is the right to pay or receive a (usually notional) amount of money at a given interest rate.The interest rate derivatives market is the largest derivatives market in the… …   Wikipedia

  • Conversion — The exchange of a convertible type of asset into another type of asset, usually at a predetermined price, on or before a predetermined date. The conversion feature is a financial derivative instrument that is valued separately from the underlying …   Investment dictionary

  • Bond duration — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • Credit-linked note — A credit linked note (CLN) is a form of funded credit derivative. It is structured as a security with an embedded credit default swap allowing the issuer to transfer a specific credit risk to credit investors. The issuer is not obligated to repay …   Wikipedia

  • Microprocessor — Intel 4004, the first general purpose, commercial microprocessor A microprocessor incorporates the functions of a computer s central processing unit (CPU) on a single integrated circuit,[1] (IC) or at most a few integrated circuits …   Wikipedia

  • endocrine system, human — ▪ anatomy Introduction  group of ductless glands (gland) that regulate body processes by secreting chemical substances called hormones (hormone). Hormones act on nearby tissues or are carried in the bloodstream to act on specific target organs… …   Universalium

  • PID controller — A block diagram of a PID controller A proportional–integral–derivative controller (PID controller) is a generic control loop feedback mechanism (controller) widely used in industrial control systems – a PID is the most commonly used feedback… …   Wikipedia

  • climate — /kluy mit/, n. 1. the composite or generally prevailing weather conditions of a region, as temperature, air pressure, humidity, precipitation, sunshine, cloudiness, and winds, throughout the year, averaged over a series of years. 2. a region or… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”