MUNICIPAL BOND ARBITRAGE
A tax arbitrage that comprises of creating a portfolio of tax-exempt municipal bonds and concurrently hedging the duration risk of the portfolio via short selling of coequal taxable corporate bonds of the similar maturity, overall interest rate swaps. Because interest on municipal bonds is exempted from federal income tax, an arbitrageur can accept after-tax earning from the municipal bond portfolio which is greater than the interest paid in the interest rate swap.
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Liquidity Adjustment Facility
A tool in monetary policy where banks are allowed to borrow money through repurchase agreements, and to respond to liquidity pressures. The governm ...
Data Warehousing
Electronic storage of information in a business or corporation. It should be secure, reliable and easy to retrieve and manage. It originated in 198 ...
One-Tailed Test
A statistical test where the critical area of a circulation is one-sided so that it is either less than or greater than a specific value, but not b ...
Less-than-Truckload
A shipping service that carries small loads of freight, weight between partial and full truckload. The service is being offered by many large and n ...
Original Cost
It simply refers to the total cost associated in buying an asset.
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