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Q: please tell me what an "accordion feature" is

Category: glossary , Asked by: Brayan A. From Honolulu, United States

A: A type of option that a company can buy that gives it the right to increase its line of credit or similar type of liability with a lender. Companies typically purchase an accordion feature in anticipation of the need for more working capital for possible expansion opportunities. For example, suppose company ABC has established a $100,000 line of credit with the Bank of XYZ. Company ABC has also purchased an "accordion feature" that would let it increase its total debt commitment of $100,000 to $150,000 because Company ABC believes that it will need an additional $50,000 if it decides to add a new sales division. This term's origin is derived from how an accordion can be pulled and stretched in a manner that lengthens its total size. Visit FOREX.com

    what is a "pass-through rate"?

    Category: glossary by C. Wynn from Midland, United States

    The rate on a securitized asset pool - such as a mortgage-backed security (MBS) - that is "passed-through" to investors once management fees and guarantee fees have been paid to the securitizing corporation. The pass-through rate (also known as the coupon rate for the MBS) will be lower than the interest rate on the individual securities within the offering. For example, suppose that an agency takes two million dollars' worth of mortgage loans, each of which pays 6% interest, and turns them into a 5.5% mortgage-backed security. The 5.5% reflects the pass-through rate, and the agency takes the remaining 0.5% as a cut of the proceeds. The largest issuers of securitized assets are the Sallie Mae, Fannie Mae and Freddie Mac corporations. While these companies are for-profit business, their guarantees are backed by the U.S. Government, giving them high credit ratings.

    any forex online trading system that's popular for its great connection that you can recommend for me?

    Category: technical by Matthew T. From Almere, Netherlands

    If you want a forex online trading system with the fastest server connection, you should really go to "AVA FX". We're always excited with the connection to the system's server. It is unchallenging to deal with the forex program. You will encounter non of many of the ordinary problems you get using other servers, and the communication with the server is at all times quick.

    do you know what the "trigger warrant" is?

    Category: glossary by Lilia C. From Netherlands

    "trigger warrant " is A form of warrant which triggers an one-off payout in the event of an underlying asset reaching a specified level.

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    what is "redemption"?
    a "redemption " is The repurchase of a security, such as a bond or preferred stock, by the issuing company at maturity, or before if it is cancelled by the company. Visit MB Trading

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