COLLAR is the simultaneous purchase of an interest rate cap and sale of an interest rate floor on the same index for the same maturity and notional principal amount.
LADDER is a form of diversification in which investments with widely varying maturities are held within an investment portfolio. Spreading investments over a range of maturities reduces interest rate risk on reinvestment by averaging out interest rate cycles. This strategy assures a continuous cash flow over time with some potential sacrifice of optimum total return.
EBIDA is Earnings Before Interest, Depreciation And Amortization.
Enter a term, then click the entry you would like to view.