The interbank market is the global network utilized by financial institutions to trade currencies between themselves. While some interbank trading is done by banks on behalf of large customers, most interbank trading is proprietary, meaning that it takes place on behalf of the banks’ own accounts. Banks use the interbank market to manage exchange rate and interest rate risk.
The weighted average loan age (WALA) measures the average age of the loans in a pool of mortgage-backed securities (MBS). The weights are based on the dollar amount of each loan at each maturity in proportion to the aggregate total of the pool and can be weighted on the remaining principal balance dollar figure or the nominal value of the loan.
Activities of daily living (ADLs) are routine activities people do every day without assistance. There are six basic ADLs: eating, bathing, getting dressed, toileting, transferring, and continence. The performance of these ADLs is important in determining what type of long-term care and health coverage, such as Medicare, Medicaid, or long-term care insurance, a person will need as he or she ages.
Revenue per available room (RevPAR) is a metric used in the hospitality industry to measure hotel performance. The measurement is calculated by multiplying a hotel’s average daily room rate (ADR) by its occupancy rate. RevPAR is also calculated by dividing a hotel’s total room revenue by the total number of available rooms in the period being measured.
A power of attorney (POA) is a legal document giving one person (the agent or attorney-in-fact) the power to act for another person (the principal). The agent can have broad legal authority or limited authority to make legal decisions about the principal’s property, finances or medical care. The power of attorney is frequently used in the event of a principal’s illness or disability, or when the principal can’t be present to sign necessary legal documents for financial transactions.
Profitability ratios are a class of financial metrics that are used to assess a business’s ability to generate earnings relative to its revenue, operating costs, balance sheet assets, and shareholders’ equity over time, using data from a specific point in time.
The true strength index is a technical momentum oscillator. The indicator may be useful for determining overbought and oversold conditions, indicating potential trend direction changes via centerline or signal line crossovers, and warning of trend weakness through divergence.
Zero-floor limit is a term that relates to authorization for transactions involving credit and debit cards. Floor limit refers to the limit above which credit or debit transactions require authorization. A retailer can only automatically process transactions up to the maximum set by the floor limit. When that limit is zero, all transactions require authorization, regardless of their size. Authorization is provided electronically through the debit or credit card’s issuer.
A virtual data room (VDR), also known as a deal room, is a secure online repository for document storage and distribution. It is typically utilized during the due diligence process preceding a merger or acquisition to review, share, and disclose company documentation.
MiFID II is a legislative framework instituted by the European Union (EU) to regulate financial markets in the bloc and improve protections for investors. Its aim is to standardize practices across the EU and restore confidence in the industry, especially after the 2008 financial crisis. A revised version of the original MiFID, it rolled out on January 3, 2018, more than six years after the European Commission, the EU’s executive branch, adopted a legislative proposal for it.