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.
Backup Line of CreditBackup 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.
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 paybackDiscounted payback
The length of time needed to recoup the present value of an investment.
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.
Back feeBack fee
The fee paid on the extension date if the buyer wishes to continue the option.
Further SuggestionsBack to back financing
Tax loss carryback, carryforward
Death backed bonds
"Back up the truck"
Sale and lease back
Discounted payback period rule