What Is a Reduction Certificate? A reduction certificate is a document provided by a lender that clearly outlines and breaks down the remaining balance on a mortgage loan. Key Takeaways A reduction certificate is a document provided by a lender that clearly outlines and breaks down the remaining balance on a mortgage loan.In most instances
What Is Re-Entry Term Insurance? Re-entry term insurance is a type of life insurance contract that offers low rates for a fixed period, and which will continue to offer low rates if the policyholder passes periodic medical examinations. Key Takeaways Re-entry term insurance is a type of life insurance contract that offers low rates for
What is the Reference Base Period? The reference base period is the year in which the Consumer Price Index, measuring changes in consumer prices in the U.S., is equal to 100. A reference base period serves as a benchmark for future periods, allowing economists to judge the rate of U.S. inflation over time. The reference
What Is Reference Entity? A reference entity is the issuer of the debt that underlies a credit derivative. The reference entity is the organization that issued the reference asset (bond or other debt-backed security) that, in turn, is the subject of a credit derivative. The reference entity can be a corporation, government, or other legal
What Is a Reference Obligation? A reference obligation is a specially designated debt obligation upon which a credit derivative, such as a credit default swap, is based and is issued by the reference entity. It does not represent all the forms of debt issued by the entity, but only a specific obligation. Often, this obligation
What Is a Reference Rate? A reference rate is an interest rate benchmark used to set other interest rates. Various types of transactions use different reference rate benchmarks, but the most common include the Fed Funds Rate, LIBOR, the prime rate, and the rate on benchmark U.S. Treasury securities. Reference rates are useful in homeowner mortgages
What Is a Recessionista? A recessionista is a person who can shop on a limited budget and still manage to be up-to-date on the most current fashions. In other words, times of economic hardship do not prevent them from remaining stylish. A recessionista does not let a bad economy, a bear market, or high inflation
What Is Recession Proof? Recession proof is a term used to describe an asset, company, industry or other entity that is believed to be economically resistant to the effects of a recession. Recession-proof stocks are added to investment portfolios to safeguard them against times of economic decline, which may be the onset of a recession.
What Does Recession Resistant Mean? An entity that is not significantly affected by recessions is considered recession resistant. Recession resistance can apply to products, companies, jobs, or even entire industries. For example, products such as gasoline or basic food items may be considered recession resistant because people will continue to consume them regardless of an
What Is Recharacterization? Recharacterization refers to two separate individual retirement account (IRA) strategies: A contribution to an IRA can be recharacterized as a contribution to a different IRA. This strategy is currently permissible, and you can recharacterize your Roth IRA contribution into a traditional IRA contribution and vice versa, though specific deadlines apply. A Roth
