Investment grade
Indicates a low risk of default and high creditworthiness
Junk Bonds
High risk, high yeild bonds with a lower credit rating
Default risk
The likelihood that a borrower will fail to repay its debt
Creditworthiness
A measure of how likely a borrower is to meet its financial obligations
What is SEC short for?
Securities and Exchange Commission
What is FINRA short for?
Financial Industry Regulatory (Notice) Body
What is ESMA short for?
European Securities and Markets Authority
What is FCA short for? and which country/ies does it regulate?
Financial Conduct Authority (UK)
What is a DERIVATIVE?
Financial contracts whose value DERIVES from an underlying asset
What is a BOND?
Debt securities where investors lend money to an entity in exchange for periodic interest payments
What is meant in financial terms by SECURITIES?
Tradable financial assewts like stocks and bonds
What is a CDO (Collateralised Debt Obligation)
Structured financial products backed by a pool of debt securities
What is a RIsk Assessment?
Evaluation of potential risks and their impact
What is Risk Mitigation?
Strategies to reduce or eliminate the impact of risks
What is Risk Appetite?
The level of risk an organisation is willing to accept
What is Stress Testing?
Assessing the resiliance of a financial system or entity under adverse conditions
