What Is Regulation Q? Regulation Q is a Federal Reserve Board (FRB) rule that sets “minimum capital requirements and capital adequacy standards for board regulated institutions” in the United States. Regulation Q was updated in 2013 in the aftermath of the 2007–2008 financial crisis and continues to go through changes. Key Takeaways The original rule
What Is a Refinance Wave? A refinance wave occurs when a shift in interest rates prompts homeowners to refinance their mortgages in increased numbers. While there is no specific metric for determining what constitutes a wave, financial analysts studying real estate markets may watch for signs of a refinance wave when short-term interest rates change.
What Is Refinancing Risk? Refinancing risk refers to the possibility that an individual or company would not be able to replace a debt obligation with new debt at a critical time for the borrower. Your level of refinancing risk is strongly tied to your credit rating. To avoid refinancing risk, lenders place great value on
What Is Reflexivity? Reflexivity in economics is the theory that a feedback loop exists in which investors’ perceptions affect economic fundamentals, which in turn changes investor perception. The theory of reflexivity has its roots in sociology, but in the world of economics and finance, its primary proponent is George Soros. Soros believes that reflexivity disproves
What Is Re-Fracking? Re-fracking is an oil company practice of returning to older shale-oil and shale-gas wells, fracked in the recent past, but which are no longer in production. The company hopes to use new, more effective, extraction technologies to revitalize and capitalize on the well’s resources. Re-fracking can be useful on those deposits where the shale produces low yields, as it
What Is a Refunded Bond? Refunded bonds, which are a subset of the municipal and corporate bond classes, are bonds that have their principal cash amount already held aside by the original issuer of the debt. This is often accomplished through the use of a sinking fund, an account a firm uses to set aside
What Is Refunding? In corporate finance and capital markets, refunding is the process where a fixed-income issuer retires some of their outstanding callable bonds and replaces them with new bonds, usually at more favorable terms to the issuer as to reduce financing costs. The new bonds are used to create a sinking fund to repay
What Is the Regional Comprehensive Economic Partnership (RCEP)? The Regional Comprehensive Economic Partnership (RCEP) is a free trade agreement (FTA) that will create the world’s largest trading bloc and mark a significant achievement for China as it battles the U.S. for influence and economic supremacy in the Asia-Pacific region. The 15 Asia-Pacific nations, representing nearly
What Is a Regional Fund? A regional fund is a mutual fund run by managers who invest in securities from a specified geographical area, such as Latin America, Europe, or Asia. A regional mutual fund typically owns a diversified portfolio of companies based in and operating out of its specified geographical area. However, some regional funds
What Is a Regional Stock Exchange? A regional stock exchange is a stock exchange that is located in a region outside that country’s primary financial center. Often, companies that cannot meet the strict listing requirements of a national exchange may qualify for a listing on a regional exchange, though a company that qualifies to be on
