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Series

• Can refer to a sequential or chronological arrangement of bonds. This arrangement is sometimes referred to as Tranches or Serial Bonds. The term also refers to the financial industry test and associated license.

 
 Embedded terms in definition
 Industry
Sequential
Serial bonds
 
 Referenced Terms
 Annuity: Fixed number of identical cash flows that start one period from today. Typically, annuity products are used to provide income in retirement.Is an insurance product which comes in two basic forms: fixed and variable. The fixed version can make a lump sum or periodic lifetime payments to the annuitant. The variable version has a separate account attached to the annuity contract. This type of contract is considered a security because it is dependent on equities and its total value is subject to fluctuate due to market risk. There are many annuity varieties. Some are: Annuity Certain, Annuity Due, Deferred Annuity, Fixed Annuity, Life Annuity, Ordinary Annuity, Perpetuity, and Variable Annuity. Also, see Interest Impact on Present Value of Ordinary Annuity of 1 Per Period.A regular periodic payment made by an insurance company to a policyholder for a specified period of time.A finite stream of equal and periodic (regular) cash flows. These cash flows can be inflows of returns earned on investments or outflows of funds invested to earn future returns.(1) A Series of periodic payments. (2) A contract under which an insurance company promises to make a series of regular payments to a named individual for life.

 Arch: Is Autoregressive Conditional Heteroskedasticity. It is a time Series approach that models volatility as function of previous returns.

 Autocorrelation: Is the statistical dependency of items within a time Series. This compares to Serial Correlation.The correlation of a variable with itself over successive time intervals.

 Basis point: A measure of a bond's Yield, equal to 1/100th of 1% of yield. A bond whose yield increases from 5.0% to 5.5% is said to increase by 50 basis points.In the bond market, the smallest measure used for quoting yields is a basis point. Each percentage point of yield in bonds equals 100 basis points. Basis points also are used for interest rates. An interest rate of 5% is 50 basis points greater than an interest rate of 4.5%.1/100th of 1%.Is the value of an 01 or basis point for credit instruments. Here, it refers to one-hundred of a full percentage point in yield. Sometimes, it refers to a basis point in price. It can also refer to a basis point difference in a basis time Series.

 Basis risk: Is the risk in the basis time Series. This can be influenced by many variables although the total impact is less than the exposure for a naked position. When a hedge is placed, price risk is transformed into basis risk. Basis risk is substantially less than price or inventory risk in terms of dollars.The uncertainty about the basis at the time a hedge may be lifted. Hedging substitutes basis risk for price risk.

 
 Related Terms
 

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