Tag Archive for 'D Glossary'

Dynamic hedging

Dynamic hedging

Dynamic hedging

A strategy that involves rebalancing hedge positions as market conditions change; a strategy that seeks to insure the value of a portfolio using a synthetic put option.



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Dynamic asset allocation

Dynamic asset allocation

Dynamic asset allocation

An asset allocation strategy in which the asset mix is mechanistically shifted in response to -changing market conditions, as in a portfolio insurance strategy, for example.



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Dutch auction

Dutch auction

Dutch auction

Auction in which the lowest price necessary to sell the entire offering becomes the price at which all securities offered are sold. This technique has been used in Treasury auctions.



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Duration

Duration

Duration

A common gauge of the price sensitivity of an asset or portfolio to a change in interest rates.



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Dupont system of financial control

Dupont system of financial control

Dupont system of financial control

Highlights the fact that return on assets (ROA) can be expressed in terms of the profit margin and asset turnover.



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Due bill

Due bill

Due bill

An instrument evidencing the obligation of a seller to deliver securities sold to the buyer. Occasionally used in the bill market.



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Dual-currency issues

Dual-currency issues

Dual-currency issues

Eurobonds that pay coupon interest in one currency but pay the principal in a different currency.



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Dual syndicate equity offering

Dual syndicate equity offering

Dual syndicate equity offering

An international equity placement where the offering is split into two tranches – domestic and foreign – and each tranche is handled by a separate lead manager.



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Drop, the

Drop, the

Drop, the

With the dollar roll transaction the difference between the sale price of a mortgage-backed pass-through, and its re-purchase price on a future date at a predetermined price.



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Drop lock

Drop lock

Drop lock

An arrangement whereby the interest rate on a floating rate note or preferred stock becomes fixed if it falls to a specified level.



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