CALAMITY CALL
A call feature of a Collateralized Mortgage Obligation (CMO) mainly intended to lessen the reinvestment risk of the issuer. If the cash flow produced by the underlying collateral is insufficient to hold the interest payments and scheduled principal, then the issuer needs to surrender a part of the CMO issue.
"Clean-up call" is another term for Calamity Call.
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Affirmative Covenant
A kind of contract or promise that requires a party to conduct some action. For example, a bond covenant which provides that the issuer must delive ...
Pure Risk
A risk where loss is the only potential outcome; there is no positive result. A pure risk is related to events that are out of control of the risk- ...
Efficiency
Performance level describing a process which uses the lowest amount of inputs to come up with the greatest amount of inputs. It is relative to usin ...
Tax Free
Goods and/or financial products that are not taxable. Having the tax free status allows an entity to save money and encourages additional spending ...
Reprice
A situation that is most often allowed for company executives or high-level employees. It permits them to trade in their options that out of the mo ...
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