What Is a Curve Steepener Trade? A curve steepener trade is a strategy that uses derivatives to benefit from escalating yield differences that occur as a result of increases in the yield curve between two Treasury bonds of different maturities. This strategy can be effective in certain macroeconomic scenarios in which the price of the
What Is a Cushion Bond? A cushion bond is an investment that is sold at a premium to similar bonds because it comes with a relatively high coupon rate. The promise of a higher return serves as a “cushion” for the investor against an unexpected increase in market rates. The cushion bond is a type
What Is Cushion Theory? Cushion theory argues that a heavily shorted stock’s price, though it falls first, will again rise because the short-sellers must eventually purchase shares to cover their short positions. A “cushion” thus exists because there is a natural limit to the extent to which a stock may fall before short covering eventually
What Is a CUSIP Number? CUSIP refers to the Committee on Uniform Securities Identification Procedures which oversees the entire CUSIP system. The CUSIP number is a unique 9-digit identification number assigned to all stocks and registered bonds in the United States and Canada, and it is used to create a concrete distinction between securities that are
What Is a Custodial Account? The term custodial account generally refers to a savings account at a financial institution, mutual fund company, or brokerage firm that an adult controls for a minor (a person under the age of 18 or 21 years, depending on the laws of the state of residence). Approval from the custodian
What Is a Custodial Agreement? A custodial agreement is an arrangement wherein one holds an asset or property on behalf of the actual owner (beneficial owner). Such agreements are generally entered into by state agencies, or companies to administer various benefit programs. Key Takeaways With a custodial agreement, a nominee holds assets or property on behalf
What Is a Custodian Bank? A custodian bank is a financial institution that holds customers’ securities for safekeeping to prevent them from being stolen or lost. The custodian may hold stocks, bonds, or other assets in electronic or physical form on behalf of its customers. Often, a custodian bank does more than provide asset protection. It can
What Is Customer Relationship Management (CRM)? Customer relationship management (CRM) refers to the principles, practices, and guidelines that an organization follows when interacting with its customers. From the organization’s point of view, this entire relationship encompasses direct interactions with customers, such as sales and service-related processes, forecasting, and the analysis of customer trends and behaviors.
What Is a Customer Information File (CIF)? A customer information file (CIF) is an electronic file that stores all pertinent information about a customer’s personal and account information. The customer information file (CIF), which contains a CIF number, allows the business to view its customer accounts by relationship and not strictly by account type. Although many
What Is Customer Service? Customer service is the direct one-on-one interaction between a consumer making a purchase and a representative of the company that is selling it. Most retailers see this direct interaction as a critical factor in ensuring buyer satisfaction and encouraging repeat business. Even today, when much of customer care is handled by automated
