What is a Decline Curve? The decline curve is a method for estimating reserves and predicting the rate of oil or gas production. It typically shows the pace at which production is expected to decline over the lifetime of an energy asset. Key Takeaways The decline curve is a method for estimating reserves and predicting
What Is the Declining Balance Method? The declining balance method is an accelerated depreciation system of recording larger depreciation expenses during the earlier years of an asset’s useful life and recording smaller depreciation expenses during the asset’s later years. Key Takeaways In accounting, the declining balance method is an accelerated depreciation system of recording larger
What Is Decoupling? In financial markets, decoupling occurs when the returns of one asset class diverge from their expected or normal pattern of correlation with others. Decoupling thus takes place when different asset classes that typically rise and fall together start to move in opposite directions, such as one increasing and the other decreasing. One
What Is Decreasing Term Insurance? Decreasing term insurance is a type of renewable term life insurance with coverage decreasing over the life of the policy at a predetermined rate. Premiums are usually constant throughout the contract, and reductions in coverage typically occur monthly or annually. Terms range between 1 year and 30 years depending on the plan
What Is a Decree of Foreclosure and Sale? The term decree of foreclosure and sale refers to a legal announcement relating to the foreclosure of a debtor’s property, which is done to satisfy their outstanding debt. Decrees of foreclosure and sale normally involve real estate and mortgage loans. Issued by a court, a decree of
What Is a Dedicated Portfolio? A dedicated portfolio is an investment portfolio where the cash flows are designed to match the anticipated liabilities. Dedicated portfolios are usually passively managed and are composed of stable, investment-grade fixed-income assets. Understanding Dedicated Portfolio Dedicated portfolios were promoted by financial researcher Martin L. Leibowitz, who wrote extensively about the
What Is a Dedicated Short Bias? Dedicated short bias is a hedge fund strategy that maintains a net short exposure to the market through a combination of short and long positions. A dedicated short bias investment strategy attempts to capture profits when the market declines by holding investments that are overall positioned to benefit when
DEFINITION of Dedication Strategy Dedication strategy is an asset management method by which the anticipated returns on an investment portfolio are matched with estimated future liabilities. A dedication strategy is frequently used in pension funds and insurance company portfolios to ensure that future liabilities can be met. Dedication strategy is also called portfolio dedication, cash
What Is a Deductible? For tax purposes, a deductible is an expense that an individual taxpayer or a business can subtract from adjusted gross income while completing a tax form. The deductible expense reduces taxable income and, therefore, the amount of income taxes owed. U.S. individual taxpayers may either use the standard deduction or fill out
What Is a Debt Bomb? A debt bomb is a situation occurring when a major financial institution, such as a multinational bank, defaults on its obligations which, in turn, causes disruption not only in the financial system of the institution’s home country but also in the global financial system as a whole. Key Takeaways A
