Detailed Table of Terms

switch to abbreviated table of terms

This section shows terms for money market and other short term debt instruments and contracts.

Line Term type Term Definition Synonym Simple Type Related Thing Multiples Business Justification Term Origin Definition Source Consensus Last Modified
1 Logic ANY OF Organization OR Government  An entity which is an Organization or some kind of Government such as a Municipal Government.                  Review   30-Jun-10
2 Relationship fact selection  Any kind of government, such as a Municipality.        Government         Review 30-Jun-10
3 Relationship fact selection  Any kind of Organization.        Organization         Review 30-Jun-10
4 Thing Asset Repurchase Agreement  A Repurchase Agreement defined from the point of view of the lender, where it is seen as an asset repo.    RePo.              Review  30-Jun-10
5 Parent Is a       Repurchase Agreement           30-Jun-10
6 Disjoint mutually exclusive         Liability Repurchase Agreement           30-Jun-10
7 Relationship fact defined from perspective of  The lender is the party from whose perspective this is defined as an asset repo.        Repo Lender         Review  30-Jun-10
8 Thing Bankers Acceptance  A Draft where the drawer and drawee of the draft are distinct parties and the drawee is a bank.            In drafts where the payee may submit the draft to the drawee for confirmation that the draft is a legitimate order and that the drawee will make payment on the specified date. Such confirmation is called acceptance - the drawee accepts the order to pay as legitimate. The drawee stamps ACCEPTED on the draft and is thereafter obligated to make the specified payment when it is due. If the drawee is a bank, the acceptance is called a bankers acceptance (BA).  A bankers acceptance is an obligation of the accepting bank. Depending on the bank's reputation, a payee may be able to sell the bankers acceptance - that is, sell the time draft accepted by the bank. It will sell for the discounted value of the future payment. In this manner, the bankers acceptance becomes a discount instrument traded in the money market. Paying discounted value for a time draft is called discounting the draft.  Matures at par, the same as discounted CP or a short term TBill.    SMER   riskglossary.com   Review   30-Jun-10
9 Parent Is a       Tradable Debt Instrument         Yes 30-Jun-10
10 Parent Is a       Draft           30-Jun-10
11 In union In Union       Money Market Instrument         Yes 30-Jun-10
12 Simple fact Value At Issue    The relative value at which the instrument is issued, namely par, premium or discount. These instruments are issued at a discount.      Debt Relative Value Selection    Discount       Review 30-Jun-10
13 Simple fact Value At Maturity    The value at which the instrument matures, namely par, discount or premium. These instruments mature at par.      Debt Relative Value Selection    Par       Review 30-Jun-10
14 Simple fact Putable    Whether the holder has the right to ask for redemption of the security prior to final maturity. This instrument is not putable.      yes/no    no       Review 30-Jun-10
15 Simple fact Callable    Whether the issuer of the debt instrument can call the debt prior to maturity. This instrument is not callable.      yes/no    no       Review 30-Jun-10
16 Simple fact Strippable    Whether or not the instrument can be stripped, so that interest and principal may be traded separately. This instrument cannot be stripped.      yes/no    no       Review 30-Jun-10
17 Thing Certificate Of Deposit  A certificate of deposit (CD) is a money market instrument issued by a depository institution as evidence of a time deposit.            Small denomination certificates of deposit are issued to retail investors. In the United States, these usually are covered by deposit insurance.   A certificate of deposit has a fixed term. At the end of the term, the deposit is returned with interest. The vast majority of certificates of deposit have terms of under a year, with three months being typical. Certificates of deposit with terms of a year or more are called term CDs. Terms of five years are not unheard of.  Most certificates of deposit credit a fixed rate of interest, but there are also floating-rate certificates of deposit. A fee must be paid to withdraw funds early. This is called a CD interest penalty or a withdrawal penalty. Because most certificates of deposit are negotiable, investors usually sell an unwanted certificate of deposit rather than pay a fee and withdraw the funds. To facilitate transferability, most certificates of deposit are issued in bearer form, but some are registered.  Can be interest at maturity or it can be periodic payments.    SMER   riskglossary.com   Yes   30-Jun-10
18 Parent Is a       Tradable Debt Instrument         Yes 30-Jun-10
19 In union In Union       Money Market Instrument         Yes 30-Jun-10
20 Disjoint mutually exclusive         Money Market Deposit            30-Jun-10
21 Simple fact Value At issue    The relative value at which the instrument is issued, namely par, premium or discount. These instruments are issued at par.     Debt Relative Value Selection    Par       Review 30-Jun-10
22 Simple fact Value At Maturity    The value at which the instrument matures, namely par, discount or premium. These instruments mature at par with interest.     Debt Relative Value Selection    Par       Review 30-Jun-10
23 Simple fact Putable    Whether the holder has the right to ask for redemption of the security prior to final maturity. This instrument is not putable.      yes/no    no       Review 30-Jun-10
24 Simple fact Callable    Whether the issuer of the debt instrument can call the debt prior to maturity. This instrument is not callable.      yes/no    no       Review 30-Jun-10
25 Simple fact Strippable    Whether or not the instrument can be stripped, so that interest and principal may be traded separately. This instrument cannot be stripped.      yes/no    no       Review 30-Jun-10
26 Thing Commercial Paper  Commercial paper (CP) is unsecured short-term promissory notes issued primarily by corporations, although there are also municipal and sovereign issuers (not included in this definition).            This is tradable in the sense that it can be sold back to the issuer. Can also be more widely traded.  Term is typically 270 days or less.   There are two types of Commercial Paper: Discounted CP and Interest Bearing CP.      riskglossary.com   Review   30-Jun-10
27 Parent Is a       Tradable Debt Instrument         Yes 30-Jun-10
28 In union In Union       Money Market Instrument         Yes 30-Jun-10
29 Disjoint mutually exclusive         Treasury Bill          Yes 30-Jun-10
30 Relationship fact has maturity duration  The maturity of commercial paper is defined as being typically up to 270 days. In the US market this is 270 days, while in the United Kingdom it is one year. Other markets may vary.        Typical Duration may be       Review  30-Jun-10
31 Relationship fact issuer  The issuer of the commercial paper, which is a Company.        Commercial Paper Issuer         Review  30-Jun-10
32 Simple fact Value At Maturity    The value at which the instrument matures, namely par, discount or premium. These instruments mature at par.      Debt Relative Value Selection    Par       Review 30-Jun-10
33 Simple fact Putable    Whether the holder has the right to ask for redemption of the security prior to final maturity. This instrument is not putable.      yes/no    no       Review 30-Jun-10
34 Simple fact Callable    Whether the issuer of the debt instrument can call the debt prior to maturity. This instrument is not callable.      yes/no    no       Review 30-Jun-10
35 Simple fact Strippable    Whether or not the instrument can be stripped, so that interest and principal may be traded separately. This instrument cannot be stripped.      yes/no    no       Review 30-Jun-10
36 Thing Commercial Paper Issuer  Any entity that issues Commercial Paper. This includes corporations but the Special Purpose Entities that issue Asset Backed Commercial Paper (ABCP) and some mutual funds also issue CP. Can also be a banks, an institution, pretty much anything. There are no hard and fast criteria for this. Therefore this is defined as being any kind of Organization or any kind of Government.                  Review   30-Jun-10
37 Parent Is a       Security Issuer           30-Jun-10
38 Relationship fact identified as  The issuer of commercial Paper may be an Incorporated company or a Special Purpose Vehicle. It may also be a municipal or sovereign issuer in some cases. This is therefore identified as being potentially any organization or government.        ANY OF Organization OR Government         Review  30-Jun-10
39 Thing CP Typical Duration Description  The formal description of the typical period of time which is the mayturity of a Commercial Paper instrument.            For US Commercial Paper this is 270 with a denomination of Day; for UK CP this would be 1 with a denomination of Year.   This does not need to be specified but may be specified in order to define the typical duration for Commercial Paper as defined in a particular market or jurisduction. Note that Commercial Paper is defined as being part of the set of instruments which are "Money Market" instruments without this term needing to be specified, as this may vary from one market to another. However this term may be used in any such market as a defining fact about Commercial Paper.        Review   30-Jun-10
40 Parent Is a       Duration Description           30-Jun-10
41 Relationship fact denomination  The denomination in which the typical duration is measured. This may be Days or Years.       Temporal Unit   for a UK based CP with a typical maturity of 1 year or less, this would need the denominatio nto be Years. For a US market CP definition, the typical maximum maturity is given as 270 days so the denomination would be Days.         30-Jun-10
42 Simple fact Multiplier    The typical duration for the CP instrument.      whole number      For US Commercial Paper this is 270 with a denomination of Day; for UK CP this would be 1 with a denomination of Year.        Review  30-Jun-10
43 Thing Discounted CP  A Discounted CP is similar to a Treasury Bill except the maturity is 270 days or less.  Therefore (draft definition):  A Money Market instrument (short term debt instrument) issued by a corporation for the purposes of raising funds. This is tradable and accretes interest i.e. it is a Discounted Instrument. It has a maturity of 270 days or less.                  Review   30-Jun-10
44 Parent Is a       Commercial Paper         Yes 30-Jun-10
45 Disjoint mutually exclusive   Discounted CP and Interest Bearing CP are distinguished by the relative value at which they are issued (Discoiunt or Par respectively) and therefore are mutually exclusive.        Interest Bearing CP         Review 30-Jun-10
46 Simple fact Value At Issue    The relative value at which the instrument is issued, namely par, premium or discount. These instruments are issued at a discount.      Debt Relative Value Selection    Discount       Review 30-Jun-10
47 Simple fact Value At Maturity    The value at which the instrument matures, namely par, discount or premium. These instruments mature at par.      Debt Relative Value Selection    Par       Review 30-Jun-10
48 Thing Eurodollar Deposit  A US dollar deposit or other currency deposit made outside the US or the country that issues that currency.  Further notes from riskglossary.com (part of Money Market Deposit article):  The Eurodollar market has become global, so its name is a bit of a misnomer. A bank in Japan or Singapore may accept dollar deposits, but these are still called Eurodollar deposits. The market also includes other currencies, so there are Eurosterling, Euroyen, Euroswiss, etc. To confuse matters, in 1999, the European Union embraced the euro as its new currency, so you can now hear of Euroeuro. Eurocurrency is the general term for any currency deposited in bank branches outside countries where it is the national currency.   Comment: Should this not rather be labeled as Eurocurrency Deposit, corresponding with the above definition? Eurodollar deposit would be a dollar-denominated sub type of this.                  Review   30-Jun-10
49 Parent Is a       Money Market Deposit           30-Jun-10
50 Thing Interest Bearing CP  Interest Bearing Commercial Paper is sold at par and has interest rate but only pays interest at maturity.                  Review   30-Jun-10
51 Parent Is a       Commercial Paper         Yes 30-Jun-10
52 Disjoint mutually exclusive   Discounted CP and Interest Bearing CP are distinguished by the relative value at which they are issued (Discoiunt or Par respectively) and therefore are mutually exclusive.        Interest Bearing CP         Review 30-Jun-10
53 Simple fact Value At Issue    The relative value at which the instrument is issued, namely par, premium or discount. These instruments are issued at par.     Debt Relative Value Selection    Par       Review 30-Jun-10
54 Relationship fact Value At Maturity The value at which the instrument matures, namely par, discount or premium. These instruments mature at par and pay interest.        Debt Relative Value Selection  Par       Review 30-Jun-10
55 Thing Liability Repurchase Agreement  A Repurchase Agreement defined from the point of view of the borrower, where it is seen as a liabillity repo.    Reverse RePo.              Review  30-Jun-10
56 Parent Is a       Repurchase Agreement           30-Jun-10
57 Disjoint mutually exclusive         Asset Repurchase Agreement            30-Jun-10
58 Relationship fact defined from perspective of  The borrower is the party from whose perspective this is defined as a liability repo.        Repo Borrower         Review  30-Jun-10
59 Thing Money Market Deposit  Money market deposits are large-denomination time deposits. Terms range from overnight to one year. Interest accrues until maturity.    Eurodollar Deposit.          Interest rates for most currencies are quoted as a simple interest rate with an actual/360 day count. The exception is British pound deposits, which are also quoted with simple interest but on an actual/365 basis. For major currencies, the rates banks are offering on new deposits are reported by the British Bankers Association as daily Libor rates. For Euro deposits, Euribor has become more of the reference rate.  Money market deposits are non-negotiable. This means they cannot be traded or otherwise transferred to another party. This is what distinguishes a money market deposit from a certificate of deposit, which is negotiable.       Yes  30-Jun-10
60 Parent Is a       Non Tradable Debt Instrument         Yes 30-Jun-10
61 In union In Union       Money Market Instrument         Yes 30-Jun-10
62 Disjoint mutually exclusive         Certificate Of Deposit           30-Jun-10
63 Simple fact Value At Issue    The relative value at which the instrument is issued, namely par, premium or discount. These instruments are issued at par.     Debt Relative Value Selection    Par       Review 30-Jun-10
64 Simple fact Value At Maturity    The value at which the instrument matures, namely par, discount or premium. These instruments mature at par.      Debt Relative Value Selection    Par       Review 30-Jun-10
65 Simple fact Putable    Whether the holder has the right to ask for redemption of the security prior to final maturity. This instrument is not putable.      yes/no    no       Review 30-Jun-10
66 Simple fact Callable    Whether the writer of the debt contract (the debtor) can call the debt prior to maturity. This instrument is not callable.      yes/no    no       Review 30-Jun-10
67 Thing Non Tradable Debt Instrument  A debt instrument that is set up bilaterally between two parties, typically for short term funding of investment requirements. These are not sold on by the holder but take the form of a bilateral contract between the parties.            Does not have identifier numbers e.g. CUSIP. This is because it is overnight or short term and also not publicly traded.    SMER   SR Draft   Review   30-Jun-10
68 Parent Is a       Bilateral Contract           30-Jun-10
69 In union In Union       Financial Instrument           30-Jun-10
70 In union In Union       Debt Instrument           30-Jun-10
71 Disjoint mutually exclusive   A debt instrument is either tradable (it can be bought and sold) or itis a bilateral contract. Note that in the definition of tradable used here, being able to sell an instrument back to the writer of the contract does not count as trading.        Tradable Debt Instrument          Yes 30-Jun-10
72 Relationship fact defines terms for  The security sets out the terms for securitized debt which is owed by the writing party of the security to the holder.        Securitized Debt         Review  30-Jun-10
73 Relationship fact has call terms  Terms setting out how and when the instrument can be called.        Debt Call Terms Set     SR   SR Draft   Review  30-Jun-10
74 Relationship fact has redemption terms  Terms for repayment of principal.       Non Tradable Debt Redemption Terms         Review  30-Jun-10
75 Relationship fact has interest payment terms  Terms for payment of interest.       Non Tradable Debt Interest Terms         Review  30-Jun-10
76 Simple fact Putable    Whether the holder has the right to ask for redemption of the security prior to final maturity.      yes/no        FIBIM: PutableIndicator   SMER   Review  30-Jun-10
77 Simple fact Callable    Whether the writer of the debt contract (the debtor) can call the debt prior to maturity.      yes/no        FIBIM: CallableIndicator   SMER   Review  30-Jun-10
78 Simple fact Value At Issue    The relative value at which the instrument is issued, namely par, premium or discount.      Debt Relative Value Selection        SR Modeling   SR Draft   Review  30-Jun-10
79 Simple fact Value At Maturity    The value at which the instrument matures, namely par, discount or premium.      Debt Relative Value Selection        SR Modeling   SR Draft   Review  30-Jun-10
80 Thing Non Tradable Debt Interest Terms  Terms for payment of interest on debt instruments that are not traded securities, i.e. over the counter, bilateral paper.                  Review   30-Jun-10
81 Parent Is a       Debt Interest Payment Terms Set           30-Jun-10
82 Simple fact Interest Rate    The annual percentage rate of interest that must be paid on the debt.      percentage            Review  30-Jun-10
83 Thing Non Tradable Debt Redemption Terms  Terms for repayment of principal on debt instruments that are not traded securities, i.e. over the counter, bilateral paper.                  Review   30-Jun-10
84 Parent Is a       Debt Principal Repayment Terms Set           30-Jun-10
85 Simple fact Maturity Date    The date when the debt is scheduled to be repaid.      date            Review  30-Jun-10
86 Thing Repo Borrower  The borrower in the repurchase agreement.                  Review   30-Jun-10
87 Parent Is a       RePo Party           30-Jun-10
88 Thing Repo Lender  The lender in the repurchase agreement.                  Review   30-Jun-10
89 Parent Is a       RePo Party           30-Jun-10
90 Thing RePo Party  A party to a repurchase agreement.                  Review   30-Jun-10
91 Parent Is a       Contract Party           30-Jun-10
92 Thing Repurchase Agreement  A repurchase agreement (or repo) is an agreement between two parties whereby one party lends the other a security at a specified price with a commitment to take the security back at a later date for another specified price.    Repo.         Most repos are overnight transactions, with the sale taking place one day and being reversed the next day. Long-term repos - called term repos - can extend for a month or more. Usually, repos are for a fixed period of time, but open-ended deals are also possible. Reverse repo is a term used to describe the opposite side of a repo transaction. The party who sells and later repurchases a security is said to perform a repo. The other party - who purchases and later resells the security - is said to perform a reverse repo.   While a repo functions like the sale and subsequent repurchase of a security, but the legal reality and the economic effect is that of a secured loan. This is a loan as the original owner retains the rights to the cashflows of the underlying security.  Economically, the party purchasing the security makes funds available to the seller and holds the security as collateral. If the repoed security pays a dividend, coupon or partial redemptions during the repo, this is returned to the original owner. The difference between the sale and repurchase prices paid for the security represent interest on the loan. Indeed, repos are quoted as interest rates.   A repo always pays interest at maturity i.e. there are no periodic interest payments.  Status: The above facts were agreed at review, definition to be reviewed for completeness after this reworking.         Review  30-Jun-10
93 Parent Is a       Bilateral Contract           30-Jun-10
94 In union In Union       Money Market Instrument         Yes 30-Jun-10
95 In union In Union       Debt Instrument           30-Jun-10
96 Relationship fact has lender  The party which is the lender in the repusrhcase agreement.        Repo Lender         Review  30-Jun-10
97 Relationship fact has borrower  The party which is the borrower in the repurchase agreement.        Repo Borrower         Review  30-Jun-10
98 Relationship fact has party  Any party to a Rspurchase Agreement. This may be the lender or the borrower. This is some entity which is a signatory to the RePo contract (agreement).        RePo Party         Review  30-Jun-10
99 Relationship fact Period The duration of the repurchase agreement, where there is one.        Duration  may be This term is not present in the case of an open ended repo.    SMER   SMER   Review  30-Jun-10
100 Simple fact Open Ended    Whether the repo is open ended.      yes/no      Where this is the case, the repo does not have a period.    SMER   SMER   Review  30-Jun-10
101 Thing Term Certificate Of Deposit  A Certificate of Deposit with a maturity duration of more than one year.                  Review   30-Jun-10
102 Parent Is a       Certificate Of Deposit           30-Jun-10
103 Relationship fact maturity duration  The maturity of commercial paper is defined as being more than one year.        Duration Of More Than One Year         Review  30-Jun-10
104 Thing Treasury Bill  A Money Market instrument (short term debt instrument) issued by a Government for the purposes of raising funds for the Treasury in the Country it governs.    T-bill.         These are always traded and always accrete interest i.e. it is a Discounted Instrument (issued at a discount).       Yes  30-Jun-10
105 Parent Is a       Tradable Debt Instrument         Yes 30-Jun-10
106 In union In Union       Money Market Instrument         Yes 30-Jun-10
107 Disjoint mutually exclusive         Commercial Paper         Yes 30-Jun-10
108 Relationship fact issuer  The issuer of the Treasury Bill or equivalent Government paper. This is by definition a government of a Country.        Government Debt Issuer         Review  30-Jun-10
109 Relationship fact has interest rate  The rate of interest payable on the Treasury Bill.       Treasury Bill Reference Rate           30-Jun-10
110 Simple fact Value At Issue    The relative value at which the instrument is issued, namely par, premium or discount. These instruments are issued at a discount.      Debt Relative Value Selection    Discount       Review 30-Jun-10
111 Simple fact Value At Maturity    The value at which the instrument matures, namely par, discount or premium. These instruments mature at par.      Debt Relative Value Selection    Par       Review 30-Jun-10
112 Simple fact Putable    Whether the holder has the right to ask for redemption of the security prior to final maturity. This instrument is not putable.      yes/no    no       Review 30-Jun-10
113 Simple fact Callable    Whether the issuer of the debt instrument can call the debt prior to maturity. This instrument is not callable.      yes/no    no       Review 30-Jun-10
114 Simple fact Strippable    Whether or not the instrument can be stripped, so that interest and principal may be traded separately. This instrument cannot be stripped.      yes/no    no       Review 30-Jun-10
115 Union Money Market Instrument  Money Market Debt Instrument is a kind of short term debt security. This is defined as the logical union of all the securities that are commonly referred to as Money Market instruments.            There is no single defining fact that makes something a Money Market instrument, but a number of typical features are given below.  - Term is typically less than or equal to one year.  - Typically redeemed on maturity date at par.   - No embedded options e.g. calls and puts.   Money Market instruments may be tradable or non tradable (for example a Bankers Draft, which may be traded).   A Corporate Bond is also considered a Money Market instrument when the remaining maturity reaches 13 months. Also in the US markets, if you have a CD in excess of $1M issued by a Bank it is considered corporate debt rather than a Money Market instrument (the corporate being the bank).    SR Modeling   SR Draft   Review   30-Jun-10
116 Union of Union of       Certificate Of Deposit          Yes 30-Jun-10
117 Union of Union of       Treasury Bill          Yes 30-Jun-10
118 Union of Union of       Repurchase Agreement          Yes 30-Jun-10
119 Union of Union of       Money Market Deposit          Yes 30-Jun-10
120 Union of Union of       Commercial Paper          Yes 30-Jun-10
121 Union of Union of       Bankers Acceptance          Yes 30-Jun-10
122 In union In Union       Debt Instrument           30-Jun-10
123 Relationship fact typical maturity duration  Duration of the Money Market instrument is typically but not necessarily 12 months or less.        Up To One Year may be A CD may exceed one year in the case of a Term Deposit, but it is still included within the defined logical union of instrument types which are defined as "Money Market Instruments".        Review  30-Jun-10
124 Simple fact Putable    A money market instrument may not be put by the holder or creditor.     yes/no    no   FIBIM: PutableIndicator   SMER   Review 30-Jun-10
125 Simple fact Callable    A money market instrument may not be called by the issuer or debtor.      yes/no    no   FIBIM: CallableIndicator   SMER   Review 30-Jun-10
126 Simple fact Strippable    A money market instrument may not be stripped.      yes/no    no       Review 30-Jun-10