What Is iTraxx? iTraxx is a group of international credit derivative indices that investors can use to gain or hedge exposure to the credit markets underlying the credit derivatives. The credit derivatives market that iTraxx provides allows parties to transfer the risk and return of underlying assets from one party to another without actually transferring
What Are the iTraxx LevX Indexes? The iTraxx LevX are a pair of two tradable indexes that hold credit default swaps (CDSs) representing a diversified basket of the 40 (formerly 35) most liquid European companies that have tradable debt offerings in the secondary market. The LevX indices track what are known as leveraged loan credit
What Is Implied Volatility (IV)? The term implied volatility refers to a metric that captures the market’s view of the likelihood of changes in a given security’s price. Investors can use implied volatility to project future moves and supply and demand, and often employ it to price options contracts. Implied volatility isn’t the same as
Ivan Boesky is a renowned American arbitrageur who came to epitomize the motto “greed is good” during the financial excess of the 1980s. A major player in the hostile takeover and junk bond craze, his words partly inspired the fictional character Gordon Gekko in Oliver Stone’s movie, Wall Street. In 1987, Boesky was sentenced to
What Is an Implied Warranty of Habitability? An implied warranty of habitability is an unstated guarantee that a rental property meets basic living and safety standards before occupation and will continue to meet them for the duration of the occupancy. It only applies to leases or rentals for residential properties, not commercial properties, as tenants
What Is an Interest Shortfall? An interest shortfall is the accrued interest due that remains after a borrower has made their monthly payment. This can lead to negative amortization on some adjustable rate loans. Negative amortization is a financial term referring to an increase in the principal balance of a loan caused by a failure to cover
What Is IRS Publication 590: Individual Retirement Arrangements (IRAs)? IRS Publication 590, entitled “Individual Retirement Arrangements (IRAs),” refers to an IRS document that outlines rules for individual retirement accounts (IRAs). The document, published by the Internal Revenue Service, provides information on how to set up an IRA, how to contribute to it, how much may
What Is IRS Publication 721? The Internal Revenue Service produces the document called Publication 721: Tax Guide To U.S. Civil Service Retirement Benefits. It delineates and updates the income tax rules each year for individuals who have retired from federal service. In other words, it is the tax guide to U.S. civil service retirement benefits
What Is IRS Publication 78? IRS Publication 78 is a document published by the Internal Revenue Service (IRS) that lists organizations that qualify to receive tax-deductible contributions, as described in Section 170(c) of the Internal Revenue Code of 1986. Individuals can claim deductions of both cash and non-cash items made to qualified organizations, with typical
What is IRS Publication 908 IRS Publication 908 is a document published by the Internal Revenue Service (IRS) that provides information on how federal income tax should be treated in the case of bankruptcy. IRS Publication 908 does not cover bankruptcy laws in detail, and is designed to give basic information. BREAKING DOWN IRS Publication
