What Is the Libyan Investment Authority (LIA)? The Libyan Investment Authority (LIA) is a government-controlled entity that manages Libya’s sovereign wealth fund (SWF). The LIA’s goal is to achieve investment returns to provide for future generations by investing revenues derived from Libya’s oil reserves. The LIA was established in 2006 and has more than $67
What Is a Liability? A liability is something a person or company owes, usually a sum of money. Liabilities are settled over time through the transfer of economic benefits including money, goods, or services. Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues, bonds, warranties, and accrued
What Is Liability Insurance? Liability insurance is an insurance product that provides protection against claims resulting from injuries and damage to other people or property. Liability insurance policies cover any legal costs and payouts an insured party is responsible for if they are found legally liable. Intentional damage and contractual liabilities are generally not covered
What Is Liability Management? Liability management is the practice by banks of maintaining a balance between the maturities of their assets and their liabilities in order to maintain liquidity and to facilitate lending while also maintaining healthy balance sheets. In this context, liabilities include depositors’ money as well as funds borrowed from other financial institutions.
What Is a Liability Swap? A liability swap is a financial derivative consisting of an interest rate swap (IRS) or currency swap used to change the interest rate exposure or the currency risk exposure assumed by a party to the transaction arising from liability from exposure to a particular interest rate structure or foreign currency
What Is Libel? Libel involves the act of publishing a statement about an individual, either in written form or by broadcast over media platforms such as radio, television, or the Internet, that is untrue and threatens to harm the reputation and/or livelihood of the targeted person. Libel is considered a civil wrong (tort) and can
What Is a Liberalization Clause? A liberalization clause is an insurance policy provision that allows for adjustments to be made to existing coverage in order to comply with changes to relevant laws and regulations. Property insurance is the most likely place to find a liberalization clause. Key Takeaways A liberalization clause is added to some insurance
What Is the London Interbank Bid Rate (LIBID)? The London Interbank Bid Rate (LIBID) is the average interest rate at which major London banks bid for eurocurrency deposits from other banks in the interbank market. It is the bid rate that banks are willing to pay for eurocurrency deposits and other banks’ unsecured funds in the London interbank market, while the more
What Is a Legend? A legend is a statement on a stock certificate noting restrictions on the transfer of the stock. A stock legend is typically put in place due to the requirements established by the Securities and Exchange Commission (SEC) for unregistered securities. A stock legend may or may not be legally required on
What Is Leg Out? Leg out refers to one side of a complex (i.e., multi-leg) options transaction. A leg is a piece of an options strategy known as spreading or a combo, where traders simultaneously buy and sell options on the same underlying security but with different strike prices or different expiration months. This may
