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Z

• Is the Commodity Futures Symbol which represents the December Delivery Month.

 
 Embedded terms in definition
 Commodity
Delivery month
Delivery
Futures
 
 Referenced Terms
 Collateralized mortgage obligation: Is a complex bond structure which reallocates interest and principal payment streams. These tranches, which are often designated as A to Z pieces or securities, are engineered from mortgage backed securities used as the underlying collateral. Collateralized Mortgage Obligations come in many shapes and sizes and are often viewed as unique constructions. Some of the more commonly named tranches are: Interest Only, Principal Only, Floater, Inverse Floater, Planned Amortization Class, Support, Scheduled, Sequential, Targeted Amortization Class, and Z or Accrual Bond. Often, many of these securities contain option characteristics. Related structures are Collateralized Bond Obligations and Collateralized Loan Obligations.Abbreviated CMO. A security backed by a pool of pass-throughs, structured so that there are several classes of bondholders with varying maturities, called tranches. The principal payments from the underlying pool of pass-through securities are used to retire the bonds on a priority basis as specified in the prospectus. Related: mortgage pass-through securityA CollateraliZed Mortgage Obligation (CMO) is a vehicle that repackages the cashflows in a way that redistributes prepayment risk.

 Mortgage backed securities: The pass-throughs issued by Ginnie Mae are referred to as Mortgage Backed Securities.Securities backed by a pool of mortgage loans.Is a broad term which encompasses both generic and pool specific securities predicated on real property. The term also refers to private label or agency securities, pass-throughs, or derivatives such as CollateraliZed Mortgage Obligations. It can refer to the Over the-Counter options on mortgage backed securities as well. These mortgage backed securities are viewed as either plain vanilla or exotic. Some of the more common issues are:
  • Accrual or Accretion Bond,
  • ARMs,
  • Companion or Support,
  • Constant Maturity Treasury (CMT),
  • Floaters,
  • Gnomes,
  • Gold,
  • Inverse Floaters or Reverse Floaters,
  • IO or Interest Only,
  • IO-ette or IOette,
  • Jump Bonds,
  • Jump Z,
  • Mega,
  • PAC PO,
  • Pass Throughs,
  • Planned Amortization Class,
  • PO or Principal Only,
  • Reverse TAC,
  • Scheduled Bonds,
  • Stripped Mortgage Backed Securities,
  • Super Floater,
  • Super PAC,
  • Super PO,
  • Support,
  • Targeted Amortization Class,
  • VADM
  • Z Bond, and
  • Z PAC.
There are other types and the list is growing because of the unique nature of these instruments.

 Standard normal distribution or standardized normal distribution: Occurs when the underlying normal distribution is converted by changing its scale. The importance of this is that different normal distributions can now be compared to one another. Otherwise, separate tables of values would have to be generated for each pairing of mean and standard deviation values. This standardiZed variate term is often expressed as Z is N(0,1), or Z is a normal distribution with a mean value of zero and variance equal to one.

 Tranche: A collateraliZed mortgage obligation (CMO) is created by issuing multiple bonds (called tranches) against the cashflows of the pool.One of several related securities offered at the same time. Tranches from the same offering usually have different risk, reward, and/or maturity characteristics.Is the piece, portion or slice of a deal or structured financing. The so called A to Z securities of a CMO offering of a partitioned MBS portfolio. It can also refer to segments which are offered domestically and internationally. Tranches have distinctive features which for economic or legal purposes must be financially engineered or structured in order to conform to prevailing requirements.

 Z bond: Also known as an accrual bond or accretion bond; a bond on which interest accretes interest but is not paid currently to the i nvestor but rather is accrued, with accrual added to the principal balance of the Z and becoming payable upon satisfaction of all prior bond classes.

 
 Related Terms
 Z bond
Z or accrual bond
Z pacs
Z score

<< Ytm Z bond >>

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