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Duration gap
A method of attempting to quantify Interest rate risk involving a Comparison of the potential changes in value to assets and liabilities that are affected by Interest rate fluctuations over all relevant Intervals . The duration of each Asset or Liability defines an interval that must be assessed.
Related Terms: 13
Asset , ACH , Comparison , FIN , Interest rate risk , Interest , Interest rate , Intervals , Liability , Pot , Quant , Risk , Ratio
Semi Related Terms: 625 CLICK HERE TO VIEW
10-Q ,
10-K ,
Active asset ,
Adjusted balance method ,
Alternative assets ,
Asset ,
Asset/equity ratio ,
Available assets ,
ACH ,
Adjustable rate ,
Asset management account ,
Average daily balance method ,
Above par ,
Accreted value ,
Accrual of discount ,
Accrued interest ,
Amortization of premium ,
Amortized value ,
Asset-backed security ,
Asset swap ,
At par ,
All or any part ,
At best ,
At call ,
Adjustable rate preferred stock ,
All-risks coverage ,
At risk ,
Asset acquisition ,
Asset class ,
Asset financing ,
Add-on service ,
Abstract of title ,
Action to quiet title ,
As is ,
Assignment to creditors ,
Attorney in fact ,
Adjustable Rate Mortgage ,
Advance rate ,
Annual Percentage Rate ,
Applicable federal rate ,
Asset-based finance ,
Asset-based lending ,
Asset conversion loan ,
Assignment of mortgage ,
A shares ,
Asset allocation fund ,
Assets under management ,
Asset turnover ,
At the money ,
Absorption rate ,
Annuity factor method ,
Across the board ,
Additional paid-in capital ,
Assessed value ,
Against the box ,
At the bell ,
At the close ,
At the figure ,
At the full ,
At the market ,
At the opening order ,
Automated Pricing and Reporting System ,
Away from the market ,
Below the line ,
Books of final entry ,
Books of original entry ,
Book value per share ,
Burn rate ,
Banking Act of 1933 ,
Below par ,
Benchmark interest rate ,
Bid-to-cover ratio ,
Bureau of Public Debt ,
Brought over the wall ,
Buying on margin ,
Buy on close ,
Buy on opening ,
Buy the book ,
Balance of payments ,
Bank Rate ,
Base interest rate ,
Board of Governors ,
Breaking the syndicate ,
Bill of exchange ,
Bill of sale ,
Breach of trust ,
By the book ,
Base rate ,
Blended rate ,
Broker loan rate ,
Breakup value ,
Benchmark risk ,
B shares ,
Buy and write ,
Break-even tax rate ,
Breadth-of-market theory ,
Beat the gun ,
Capital asset ,
Capitalized interest ,
Capital liability ,
Cash asset ratio ,
Cash ratio ,
Collection ratio ,
Cost Of Goods Sold ,
Cost of sales ,
Current liabilities ,
Central assets account ,
Compound interest ,
Call risk ,
Certificate of Participation ,
Committee on Uniform Securities Identification Procedures ,
Conversion ratio ,
Conversion value ,
Coupon rate ,
Credit risk ,
Current market value ,
Current production rate ,
Call money rate ,
Code of procedure ,
Comparison ,
Currency fluctuations ,
Capitalization of income ,
Capitalization rate ,
Cap rate ,
Civilian unemployment rate ,
Cost of Living Adjustment ,
Cost-of-living index ,
Council of Economic Advisers ,
Cash and carry trade ,
Chasing the market ,
Cheapest to deliver ,
Chicago Board of Trade ,
Country risk ,
Cash surrender value ,
Cash value ,
Cash value life insurance policy ,
Cost-of-living rider ,
Certificate of stock ,
Cost of carry ,
Certificate of title ,
Contingent liability ,
Cancellation of debt ,
Certificate of Claim ,
Consumer interest ,
Cost of debt capital ,
Cost of funds ,
C shares ,
Call ratio backspread ,
Class of options ,
Close to the money ,
Counterparty risk ,
Certificate of Occupancy ,
Cloud on title ,
Cash or Deferred Arrangement ,
Capital Asset Pricing Model ,
Class A Shares ,
Class B Shares ,
Crash of 1929 ,
Crash of 1987 ,
Child and dependent care credit ,
Coefficient of determination ,
Cup and handle ,
Certificate of delivery ,
Close a position ,
Cornering the market ,
Curbs in ,
Declining balance method ,
Double-declining balance depreciation method ,
Deposit in transit ,
Date of issue ,
Date of payment ,
Deferred interest bond ,
Duration gap ,
Division of Enforcement ,
Division of Investment Management ,
Division of Market Regulation ,
Date of record ,
Dividend in arrears ,
Dividend payout ratio ,
Dividend rate ,
Desk (the) ,
Discount rate ,
Division of labor ,
De-escalation clause ,
De facto ,
Doing business as ,
Durable Power of Attorney ,
Date of maturity ,
Debtor in possession ,
Debtor-in-possession financing ,
Deed of Release ,
Deed of Trust ,
Default risk ,
Discharge of bankruptcy ,
Discharge of lien ,
Due-on-sale clause ,
Deep in the money ,
Deep out of the money ,
Deed of Surrender ,
Department of Housing and Urban Development ,
Diversifiable risk ,
Dogs of the Dow ,
Depth of market ,
Downside risk ,
Earning asset ,
Economic value ,
Efficiency ratio ,
Effective annual interest rate ,
Eurodollar certificate of deposit ,
Exact interest ,
Equity risk premium ,
Escrowed to maturity ,
Event risk ,
Either-or order ,
Exchange rate ,
Effective par ,
Economic growth rate ,
E-mini ,
Exchange of spot ,
Excluded risk ,
Effective tax rate ,
Ex-all ,
Exchange ratio ,
Explicit interest ,
Exercise ratio ,
Employee Retirement Income Security Act of 1974 ,
Exclusion ratio ,
Financial asset ,
First In First Out ,
Fixed asset ,
Fixed-charge coverage ratio ,
Form 10-Q ,
Federal Savings and Loan Association ,
Fine paper ,
Flight to quality ,
Floating-rate bond ,
Flow of funds ,
Fill or kill ,
Front-ending an order ,
Floating exchange rate ,
Foreign exchange rate ,
Forward exchange rate ,
Forward P/E ,
Factors of production ,
Favorable balance of trade ,
Federal Reserve Discount Rate ,
Fluctuation limit ,
Fair market value ,
Form 8-K ,
Form S-1 ,
Friends and family offering ,
Financial risk ,
Fixed rate ,
Fixed-rate loan ,
Fixed-Rate Mortgage ,
Floating rate ,
Forward interest rate ,
Forward Rate Agreement ,
Full faith and credit ,
Family of funds ,
Fund of funds ,
Free and clear ,
Free right of exchange ,
FIN ,
Fair value ,
G-7 ,
General Agreement on Tariffs and Trade ,
G-8 ,
Growth and income fund ,
Gather in the stops ,
Hidden asset ,
Hart-Scott-Rodino Act of 1976 ,
Hit the bid ,
House of issue ,
Hedge ratio ,
Hang Seng Index ,
Health Insurance Portability and Accountability Act ,
Holder in due course ,
Hang out loan ,
High-ratio mortgage ,
Home equity line of credit ,
Head and shoulders ,
Hammering the market ,
Held at the opening ,
Holding the market ,
Imputed value ,
Inactive asset ,
Intangible asset ,
Interest-bearing ,
In escrow ,
Interest rate collar ,
Interest rate risk ,
Interest rate swap ,
Intrinsic value ,
Investment value ,
In-house ,
Investment Advisor Act of 1940 ,
Investment Company Act of 1940 ,
In line ,
Inflation rate ,
Interest rate futures ,
Interbank Rate ,
Insurable interest ,
Insider Trading sanctions Act of 1984 ,
Interest ,
Interest expense ,
Internal Rate of Return ,
Indication of interest ,
Institutional pot ,
In intestacy ,
Inter vivos trust ,
Imputed interest ,
Interest deduction ,
Interest-only loan ,
Interest rate ,
Interest rate cap ,
Interest rate ceiling ,
Interest rate floor ,
In play ,
In-process research and development ,
Income risk ,
Interest rate option ,
Intervals ,
I/O strip ,
Inchoate interest ,
Interest-only strip ,
Income replacement ratio ,
In-service withdrawal ,
Idiosyncratic risk ,
Imbalance of orders ,
In and out ,
In sympathy ,
In the tank ,
Jointly and severally ,
Jumping the gun ,
Joint and several liability ,
Joint and survivor annuity ,
Last In First Out ,
Liability ,
Liquidation value ,
Liquidity ratio ,
Lender of last resort ,
Law of one price ,
Limited risk ,
Lending at a rate ,
Limit-on-close order ,
Long Market Value ,
Law of demand ,
Law of supply ,
London International Financial Futures and Options Exchange ,
London Inter-Bank Offer Rate ,
Letter of comment ,
Legal risk ,
Legal assets ,
Line of credit ,
Loan-to-cost ,
Loan-to-value ,
Loan value ,
Loan-value ratio ,
Lock-in ,
Life expectancy method ,
Leading the market ,
Limited Liability Company ,
Locked in ,
Long-term gain or loss ,
Level I quotes ,
Maturity value ,
Modified duration ,
Make a market ,
Margin rate ,
Market if touched order ,
Market on close order ,
Mark-to-market ,
Medium of exchange ,
Marginal propensity to consume ,
Market rate ,
Money at call ,
Mortgage interest deduction ,
Mortgage rate ,
Mortgage risk ,
Mill rate ,
Market-value weighted index ,
Maximum price fluctuation ,
Minimum fluctuation ,
Net book value ,
Net current assets ,
Net interest margin ,
Net quick assets ,
Net tangible assets ,
Noncurrent asset ,
Noncurrent liabilities ,
Non-financial asset ,
Negotiable certificate of deposit ,
Negotiable Order of Withdrawal ,
Nominal rate ,
Non-interest-bearing note ,
Notice of Sale ,
National Association of Securities Dealers ,
National Association of Securities Dealers Automated Quotations system ,
Net capital ratio ,
Nominal asset ,
Net Asset Value ,
Null and void ,
Nonperforming asset ,
Notice of Default ,
National Association of Real Estate Investment Trusts ,
Nominal value ,
Net change ,
Off the books ,
Other current assets ,
Other long term liabilities ,
Overhead ratio ,
Office of Thrift Supervision ,
Ordinary interest ,
Out-of-favor ,
Over-the-Counter ,
On-floor order ,
On margin ,
Or better ,
Operating rate ,
Open interest ,
Opinion of title ,
On account ,
On-the-spot loan ,
Out of the money ,
Old age, survivors, and disability insurance ,
On-balance volume ,
Odd lot buy/sell ratio ,
On close ,
On open ,
On the opening ,
Pooling of interests ,
Profit and loss statement ,
Par bond ,
Pass-through coupon rate ,
Payment-in-kind security ,
Premium over bond value ,
Premium over conversion value ,
Price Value of a Basis Point ,
Payout ratio ,
P&L ,
Paris Club ,
Pot ,
Pour-over will ,
Power of Attorney ,
Past-due balance method ,
Personal interest ,
Prepaid interest ,
Prepayment risk ,
Previous balance method ,
Prime rate ,
Principal risk ,
Prioritization of debt ,
Private Market Value ,
Prime rate fund ,
Plan asset ,
Paid-in capital ,
Paid-in surplus ,
Percent held by institutions ,
Private Investment in Public Equity ,
Preservation of capital ,
Put ratio backspread ,
Point-and-figure chart ,
Profit ratio ,
Painting the tape ,
Put/call ratio ,
Quick assets ,
Quant ,
Real asset ,
Replacement value ,
Reports and Records ,
Residual value ,
Retention rate ,
Return of capital ,
Return on Capital ,
Return on Invested Capital ,
Return on Total Assets ,
Risk adjusted return ,
Run rate ,
Real interest rate ,
Regulation Q ,
Reserve ratio ,
Rate covenant ,
Risk ,
Reading the tape ,
Regulation D ,
Regulation G ,
Regulation T ,
Regulation U ,
Round of funding ,
Rules of Fair Practice ,
Rate of exchange ,
Reciprocal of European terms ,
Real economic growth rate ,
Ratio ,
Reinvestment risk ,
Regulation A ,
Reverse Take-Over ,
Right of first refusal ,
Right of rescission ,
Right to Know ,
Rate-improvement ,
Rate lock ,
Renegotiable rate ,
Revolving line of credit ,
Right of recourse ,
Roll over ,
Rule of 78 ,
Ratio calendar combination ,
Ratio calendar spread ,
Ratio spread ,
Ratio write ,
Right of redemption ,
Retirement Equity Act of 1984 ,
Risk/return trade-off ,
Risk arbitrage ,
Risk-averse ,
Risk management ,
Risk neutral ,
Risk premium ,
Risk seeking ,
Ratio analysis ,
Return on Capital Employed ,
Rate of return ,
Real rate of return ,
Risk capital ,
Salvage value ,
Selling, General and Administrative Expenses ,
SG&A ,
Stranded asset ,
Savings and Loan ,
Sight letter of credit ,
Simple interest ,
S&L ,
Securities and Exchange Commission ,
Spot rate ,
Straight value ,
Segregation of securities ,
Sell the book ,
Savings rate ,
Standard of living ,
Swap rate ,
Systemic risk ,
Second-to-die insurance ,
Surrender value ,
Short interest ,
Short interest ratio ,
Statute of Limitations ,
Sale and leaseback ,
Satisfaction of debt ,
Security interest ,
Start rate ,
Staggered board of directors ,
Selling the spread ,
Short market value ,
Shareholder value ,
Selling short against the box ,
Shorting against the box ,
S Corporation ,
Short-term gain or loss ,
Standard mileage rate ,
Subchapter M ,
Subchapter S Corporation ,
Schedule C ,
Securities Act of 1933 ,
Securities Acts Amendments of 1975 ,
Securities Exchange Act of 1934 ,
Seek a market ,
S&P phenomenon ,
Stop and reverse ,
Tangible asset ,
Times interest earned ,
Total assets ,
T-Bill ,
Term to maturity ,
Take a position ,
Trailing P/E ,
Total asset turnover ,
Tenancy by the entirety ,
Teaser rate ,
TED spread ,
Truth in Lending ,
Theoretical value ,
Tenancy at will ,
Top hat plan ,
Ten-bagger ,
The Street ,
Timing the market ,
Taxpayer Relief Act of 1997 ,
Tax Reform Act of 1986 ,
Tax Reform Act of 1993 ,
Take a bath ,
U.S. Government Agency Security ,
U.S. Savings Bond ,
U.S. Treasury ,
U.S. Treasury Bill ,
U.S. Treasury Bond ,
U.S. Treasury Note ,
U.S. Treasury Securities ,
Unlimited risk ,
Unemployment rate ,
Umbrella liability insurance ,
Unearned interest ,
Unsystematic risk ,
Unit of trade ,
Unit of trading ,
Variable rate ,
Value stock ,
Variable ratio write ,
Value averaging ,
Value investing ,
Variable ratio plan ,
Value Added Tax ,
Written-down value ,
With interest ,
Waiver of premium ,
Widow-and-orphan stock ,
When, as, and if issued ,
X or XD ,
Year-over-year ,
Year-To-Date ,
Yield to call ,
Yield to maturity ,
Yield to worst ,
Y shares