What Is Red Ink? Red ink is business jargon describing a financial loss. When accountants make physical entries into a general ledger, red ink is used to show a negative number and black ink is used to show that a number is positive or profitable. Key Takeaways Red ink is financial jargon describing the coloring
What Is a Rediscount? A rediscount occurs when a short-term negotiable debt instrument is discounted for a second time. The reason an issuer would do this is to spark demand for loans when investor interest dries up. When liquidity in the market is low, banks can thus try to raise capital by rediscounting. A rediscount
What Is Redlining? Redlining is a discriminatory practice that puts services (financial and otherwise) out of reach for residents of certain areas based on race or ethnicity. Redlining is illegal. It can be seen in the systematic denial of mortgages, insurance, loans, and other financial services based on location (and that area’s default history) rather
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
