What Was Repo 105? Repo 105 was a type of loophole in accounting for repurchase (repo) transactions that the now-extinguished Lehman Brothers exploited in an attempt to hide true amounts of leverage during its times of trouble during the 2007-2008 financial crisis. In this repurchase agreement, since updated to close the loophole, a company could
What Is Reported But Not Settled (RBNS)? Reported but not settled (RBNS) refers to losses reported to an insurance company that have not been settled by the end of the accounting period. Reported but not settled (RBNS) losses are calculated using an estimation of the severity of the loss based on the available information from
What Is a Reporting Currency? Reporting currency is the currency in which an entity’s financial statements or other financial documents are reported. Choosing one currency for reporting makes it easier to understand the financial documents across the board. Most often the currency used is the currency of the country in which the parent company is
What Is Repricing? Repricing involves the exchange of worthless employee stock options for new options that have intrinsic value. This is a common practice for companies to keep or incentivize executives and other highly valued employees when the value of the company’s shares falls below the exercise price or break-even point for the options issued
What Is a Reinsurer? The term reinsurer refers to a company that provides financial protection to insurance companies. Reinsurers handle risks that are too large for insurance companies to handle on their own and make it possible for insurers to obtain more business than they would otherwise be able to. Reinsurers also make it possible
What Is Reinvestment? Reinvestment is the practice of using dividends, interest, or any other form of income distribution earned in an investment to purchase additional shares or units, rather than receiving the distributions in cash. Key Takeaways Reinvestment is when income distributions received from an investment are plowed back into that investment instead of receiving cash.Reinvestment works by
What Is a Reinvestment Rate? The reinvestment rate is the amount of interest that can be earned when money is taken out of one fixed-income investment and put into another. For example, the reinvestment rate is the amount of interest the investor could earn if he purchased a new bond while holding a callable bond
What Is a Reinvoicing Center? Reinvoicing centers are subsidiaries or separate divisions of a multinational corporation that handle intra-firm transactions in different currencies. Such divisions are the centers of invoice processing and billing for other divisions located around the world. They bill and pay all invoices in the currency of the originating country and then re-invoice the affiliate branches in
What Is a Real Estate Investment Trust (REIT)? A real estate investment trust (REIT) is a company that owns, operates, or finances income-generating real estate. Modeled after mutual funds, REITs pool the capital of numerous investors. This makes it possible for individual investors to earn dividends from real estate investments—without having to buy, manage, or
What Is a REIT ETF? Real estate investment trust (REIT) ETFs are exchange-traded funds (ETFs) that invest the majority of their assets in equity REIT securities and related derivatives. REIT ETFs are passively managed around an index of publicly-traded real estate owners. Two frequently used benchmarks are the MSCI U.S. REIT Index and the Dow
