GlossaryGuide

Securities that are guaranteed by or are the obligation of a federal agency, a federal instrumentality, or a federally sponsored enterprise. These securities include, but are not limited to, mortgage-backed securities that were issued by, guaranteed by, or are the obligation of a federal agency, a federal instrumentality, or a federally sponsored enterprise, including participation… Continue reading U.S. GOVERNMENT AGENCY AND FEDERALLY SPONSORED ENTERPRISE SECURITIES

An entity whose role is to represent the CLO investors. The U.S. CLO Trustee is responsible for issuing monthly ‘trustee reports” to investors, which list all assets held by the CLO and details its recent purchases and sales. The U.S. CLO Trustee should report the outstanding loans to U.S. resident borrowers held by foreign CLOs… Continue reading U.S. CLO TRUSTEE

A common form of sovereign debt issued by many governments.

Sweep agreements are contractual agreements between institutions and their customers that allow funds to be automatically transferred to another account at the same institution, another institution, or into a financial instrument. When funds of U.S. nonbank residents are swept to a non-U.S. office of a B reporter, the B reporter should report the funds held… Continue reading SWEEP AGREEMENTS

Contracts in which two parties agree to exchange payment streams based on a specified notional amount for a specified period. Forward starting swap contracts should be reported as swaps. Derivatives are reportable ONLY on TIC Form D Reports.

A company in which another company (parent) owns 50% or more of the voting securities, or an equivalent interest, or meets the consolidation requirements of U.S. GAAP. A subsidiary is always, by definition, an affiliate, but subsidiary is the preferred term when majority control exists.

A security evidencing debt that the holder agrees to rank after senior creditors, but before shareholders, in a bankruptcy.

A custodian that has legal responsibility for the safekeeping of securities entrusted to it by another custodian.

An over-the-counter financial instrument created specifically to meet the needs of one or a small number of investors. Some of the more common structures include: step-up bonds, index amortizing notes, dual index notes, deleveraged bonds, range bonds, and inverse floaters.

An acronym for Separately Traded Registered Interest and Principal Securities. These securities are created by “stripping” coupon payments from securities and treating these coupons as separate securities from the principal.