Back to back loan
Back to back loanA situation where an investment organisation, such as an investment trust, deposits sterling with a UK bank which subsequently arranges with a foreign associate bank to lend the equivalent amount of foreign currency to the investment organisation. The purpose of this transaction is to hedge against currency fluctuations affecting the portfolio.
A sales incentive, commonly used on mortgages, which gives customers a cash sum as soon as the deal is signed. Typically linked to heavy redemption fees.
Backward compatibilityBackward compatibility
Compatibility with earlier versions of software. When referring to Web pages, it means the Web page has been coded so the appearance and functionality of the page will be acceptable when it is viewed on computers with older versions of popular browsers.
Sale and lease backSale and lease back
Sale of an existing asset to a financial institution that then leases it back to the user. Related: Lease.
In the context of mutual funds, a feature allowing fundholders to use an earlier date on a letter of intent to invest in a mutual fund in exchange for a reduced sales charge, e.g. Giving retroactive value to purchases from the earlier date.
Commercial Mortgage Backed SecuritiesCommercial Mortgage Backed Securities
Similar to MBS but backed by loans secured with commercial rather than residential property. Commercial property includes multi-family, retail, office, etc., They are not standardized so there are a lot of details associated with structure, credit enhancement, diversification, etc., that need to be understood when valuing these instruments.
Further SuggestionsMortgage Backed Securities Clearing Corporation (MBSCC)
Back on the shelf
Stripped mortgage backed securities (SMBS)
Lehman Brothers Mortgage Backed Securities Index
mortgage backed security
Asset backed security
"Buy them back"
Back to back financing
Put ratio backspread
Loss Carry Back (Carry Forward)
Tax clawback agreement
Take back mortgage