Safety cushion

 

Home
Site Map
Add Term
Search
About Us
Contributors

Safety cushion

In a contingent immunization strategy, the difference between the initially available immunization level and the safety-net return.



Safety cushion

Similar Matches

20% cushion rule

20% cushion rule

Guideline that revenues from facilities financed by municipal bonds should exceed the operating budget plus maintenance costs and debt service by at least 20% to allow for unforeseen expenses.


Cushion theory

Cushion theory

The theory that a stock with many short positions taken in it will rise, because these positions must be covered by the stock.


Cushion bonds

Cushion bonds

High-coupon bonds that sell at only at a moderate premium because they are callable at a price below that at which a comparable noncallable bond would sell. Cushion bonds offer considerable downside protection in a falling market.


Cushion

Cushion

The minimum period between the time a bond is issued and the time it is called.


Redemption cushion

Redemption cushion

The percentage by which the conversion value of a convertible security exceeds the redemption price (strike price).




 
All rights Reserved. Do not copy without permission.