Unmatched book

Unmatched book

Unmatched book

If the average maturity of a bank’s liabilities is less than that of its assets, it is said to be running an unmatched book. The term is commonly used with the Euromarket. Term also refers to the condition when a firm enters into OTC derivatives contracts and chooses to hedge that risk by not making trades in the opposite direction to another financial intermediary. In this case, the firm with an unmatched book hedges its net market risk with futures and options, usually. Related expressions: open book and short book.

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Universal life

Universal life

Universal life

A whole life insurance product whose investment component pays a competitive interest rate rather than the below-market crediting rate.

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Unit investment trust

Unit investment trust

Unit investment trust

Money invested in a portfolio whose composition is fixed for the life of the fund. Shares in a unit trust are called redeemable trust certificates, and they are sold at a premium above net asset value.

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Unique risk

Unique risk

Unique risk

Also called unsystematic risk or idiosyncratic risk. Specific company risk that can be eliminated through diversification. See: diversifiable risk and unsystematic risk.

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Unilateral transfers

Unilateral transfers

Unilateral transfers

Items in the current account of the balance of payments of a country’s accounting books that corresponds to gifts from foreigners or pension payments to foreign residents who once worked in the country whose balance of payments is being considered.

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Unfunded debt

Unfunded debt

Unfunded debt

Debt maturing within one year (short-term debt). See: funded debt.

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