What Is an Export Credit Agency (ECA)? An export credit agency offers trade finance and other services to facilitate domestic companies’ international exports. Most countries have ECAs that provide loans, loan guarantees and insurance to help eliminate the uncertainty of exporting to other countries. The purpose of ECAs is to support the domestic economy and
What Are Export Incentives? Export incentives are regulatory, legal, monetary, or tax programs that are designed to encourage businesses to export certain types of goods or services. Exports are goods that are produced in one country and are then transported to another country for sale or trade. Exports are an important part of the exporting country’s economy
What Is Ex-Post? Ex-post is another word for actual returns and is Latin for “after the fact.” The use of historical returns has customarily been the most well-known approach to forecast the probability of incurring a loss on investment on any given day. Ex-post is the opposite of ex-ante, which means “before the event.” Key
What Is Ex-Post Risk? The term ex-post risk refers to a risk measurement technique that uses historic returns to predict future risks associated with an investment. This type of risk manages risks associated with investment returns after the fact. Future risk is determined using the statistical variance from the relative mean of long-term returns in
Exposure at default (EAD) is the total value a bank is exposed to when a loan defaults. Using the internal ratings-based (IRB) approach, financial institutions calculate their risk. Banks often use internal risk management default models to estimate respective EAD systems. Outside of the banking industry, EAD is known as credit exposure. Key Takeaways Exposure at default
What is Exposure Trigger Exposure Trigger is an event that causes a policyholder’s insurance coverage to kick in. This is one of four triggers of coverage that determines when an injury or damage covered by an insurance policy occurred and whether the policy will pay for a related claim. The exposure trigger commonly applies in
What Is an Express Warranty? An express warranty is an agreement by a seller to provide repairs or a replacement for a faulty product, component, or service within a specified time period after it was purchased. Buyers rely on these promises or guarantees and sometimes purchase items because of them. Key Takeaways An express warranty
What Is Expropriation? Expropriation is the act of a government claiming privately owned property against the wishes of the owners, ostensibly to be used for the benefit of the overall public. In the United States, properties are most often expropriated in order to build highways, railroads, airports, or other infrastructure projects. The property owner must
What Is an Extendable Bond? An extendable bond, or extendable note, is a long-term debt security that includes an option that allows the bondholder to extend its initial maturity to a later date. Key Takeaways An extendable bond is a long-term debt security that gives bondholders the option to extend its initial maturity to a
What Is Extended Trading? Extended trading is trading conducted by electronic networks either before or after the regular trading hours of the listing exchange. Such trading tends to be limited in volume compared to regular trading hours when the exchange is open. Pre-market trading in the United States, in terms of stocks, usually runs between
