GLOSSARY
ABS: See asset-backed securities.
ALM: See asset and liability management.
amortizing: An amortizing principal is one that decreases during the life of a deal or is repaid in stages during a loan. Amortizing an amount over a period of time also means accruing for it pro rata over the period.
arbitrage: The process of buying securities in one country, currency, or market, and selling identical securities in another to take advantage of price differences. When this is carried out simultaneously, it is, in theory, a risk-free transaction. There are many forms of arbitrage transactions. For instance, in the cash market, a bank might issue a money market instrument in one money center and invest the same amount in another center at a higher ...
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