Back to back loan

 

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Back to back loan

A 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.



Similar Matches

Backup Line of Credit

Backup Line of Credit

A bank assurance of funds obtained by an issuer of commercial paper to protect the CP investor from default. The issuer pays a commitment fee to the bank.


Backdating

Backdating

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.


Discounted payback

Discounted payback

The length of time needed to recoup the present value of an investment.


Commercial Mortgage Backed Securities

Commercial 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.


Back fee

Back fee

The fee paid on the extension date if the buyer wishes to continue the option.


Further Suggestions

Back to back financing
backspread
Tax loss carryback, carryforward
lease back
backtesting
Backward compatibility
Death backed bonds
Back up
Duty drawback
Dividend clawback
Lookback option
"Back up the truck"
Backed in
Sale and lease back
backwardation
Discounted payback period rule
Piggyback registration
back taxes
Pullback
Leaseback
Back testing
Backward integration
Payback
Back taxes
Feedback Systems


 
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