Your Gateway to Financial Literacy
What Are Tranches? Tranches, derived from the French term for ‘slice’, represent divisions within financial products such as mortgage-backed securities (MBS) and asset-backed securities (ABS), which are created by splitting up a pool of debt instruments or other assets into portions based on various characteristics like risk levels or maturities.
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What is a Time Deposit? A time deposit, also referred to as a term deposit or certificate of deposit (CD), is an interest-bearing bank account with a predetermined maturity date. This type of investment provides the holder with a guaranteed return on their initial deposit once the specified term comes
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What are Share Classes? Share classes refer to various types of securities within a company or mutual fund. Companies issuing common stock might have multiple classes, designated by letters like “A” and “B,” each with unique rights and privileges. For instance, Google has classes A, B, and C shares that
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Introduction to QUDS Quarterly Income Debt Securities (QUIDs) represent a unique debt instrument that offers quarterly interest payments, making them an attractive alternative for income-focused investors. With a long history dating back to 1986 when Goldman Sachs first introduced the product, QUDS have stood out as a distinctive financial product.
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Introduction to OPIC and its Establishment The Overseas Private Investment Corporation (OPIC), a U.S. development finance institution, was founded under President Nixon in 1971 as the nation’s sole government-backed agency for supporting private sector investment abroad. With a mission to promote economic development and political stability, OPIC provided essential services
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Introduction to Non-Negotiable: Definition and Examples The term ‘non-negotiable’ refers to a price, contract term, or financial product that cannot be altered or negotiated under any circumstances. When it comes to finance, understanding the concept of non-negotiability is crucial for investors and financial professionals looking to navigate various transactions. In
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Introduction: What is a Life Income Fund? A life income fund (LIF) is a type of retirement income vehicle in Canada that enables individuals to manage the payouts from their locked-in pension funds and other assets for a guaranteed lifetime income, as required by government regulations. It is a subcategory
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Introduction to Joint Life with Last Survivor Annuity A joint life with last survivor annuity is an essential financial tool for married couples who wish to secure a reliable source of income throughout their retirement years and beyond. This type of annuity, also known as a joint and survivor annuity,
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Introduction to Joint-Life Payouts Joint-life payouts is a popular payment structure for pensions and retirement plans that guarantees income continuity for a surviving spouse upon the account holder’s death. This payout structure contrasts with a single-life payout, which ends payments upon the account holder’s demise. Joint-life payouts are also referred
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Introduction: What is a CD? A certificate of deposit, commonly referred to as a CD, represents a savings instrument where an investor deposits a lump sum with a financial institution for a pre-determined term at a fixed interest rate. The primary motivation behind opening a CD is the assurance of
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