What Is the Spot Rate Treasury Curve? The spot rate Treasury curve is a yield curve constructed using Treasury spot rates rather than yields. The spot rate Treasury curve is a useful benchmark for pricing bonds. This type of rate curve can be built from on-the-run treasuries, off-the-run treasuries, or a combination of both. However
What Is a Spot Commodity? In finance, the term “spot commodity” refers to a commodity that is being sold with the intention of being delivered to the buyer fairly immediately—either presently or within only a few days. As their name suggests, spot commodities are commodities that trade on the spot market. Likewise, a spot commodity’s
What is Spot Date? The spot date refers to the day when a spot transaction is typically settled, meaning when the funds involved in the transaction are transferred. The spot date is calculated from the horizon, which is the date when the transaction is initiated. In forex, the spot date for most currency pairs is
What Is a Spot Exchange Rate? A spot exchange rate is the current price at which a person could exchange one currency for another, for delivery on the earliest possible value date. Cash delivery for spot currency transactions is usually the standard settlement date of two business days after the transaction date (T+2). Key Takeaways The
What Is the Spot Delivery Month? In the commodities futures markets, the spot delivery month is the earliest possible month in which the commodity underlying the futures contract will be deliverable. It is also known as the nearby month or front month. The opposite of the spot delivery month is the back month, which refers
What Is a Special Purpose Acquisition Company (SPAC)? A special purpose acquisition company (SPAC) is a company without commercial operations and is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring or merging with an existing company. Also known as blank check companies, SPACs have existed for decades, but
What Is SPAN Margin? SPAN margin is calculated by standardized portfolio analysis of risk (SPAN), a leading system that has been adopted by many options and futures exchanges around the world. SPAN is based on a sophisticated set of algorithms that determine margin requirements according to a global (total portfolio) assessment of the one-day risk for a trader’s
What Is the S&P Insurer Financial Strength Rating? The term S&P Insurer Financial Strength Rating refers to a system a service offered by Standard & Poor’s that rates an insurance company’s fiscal soundness and, therefore, its ability to pay claims made by its policyholders. This rating can be used as a guide by a number of
What Are S&P Core Earnings? S&P Core Earnings are used to calculate a company’s after-tax profits that come from its core business operations. Unlike the number reported for net income, they disregard one-time revenues or costs that are not part of the company’s main business activities. As the name suggests, S&P Core Earnings were created
What Is a Special Situation? A special situation is an unusual event that compels investors to buy a stock or other asset in the belief that its price will rise. The special situation by definition has little to do with the underlying fundamentals of the stock or any other rationale that investors ordinarily use to
