What Is Debt Overhang? Debt overhang refers to a debt burden so large that an entity cannot take on additional debt to finance future projects. This includes entities that are profitable enough to be able to reduce indebtedness over time. A debt overhang serves to dissuade current investment, since all earnings from new projects would
What Is Debt Restructuring Fraud? Debt restructuring fraud is an illegal technique in which an individual or corporation hides or transfers assets before filing for bankruptcy. As a result, debt restructuring allows the fraudster to reduce or even erase the debts, and then reclaim the assets after the filing goes through. Debt restructuring fraud is a clear
What Is a Debt Security? A debt security is a debt instrument that can be bought or sold between two parties and has basic terms defined, such as the notional amount (the amount borrowed), interest rate, and maturity and renewal date. Examples of debt securities include a government bond, corporate bond, certificate of deposit (CD)
What Is Debt Service? Debt service refers to the money that is required to cover the payment of interest and principal on a loan or other debt for a particular time period. The term can apply both to individual debts, such as a home mortgage or student loan, and corporate or government debt, such as
What Is Debt Signaling? Debt signaling is a financial theory that correlates a stock’s future performance with any current announcements made regarding its debt. Announcements made about a company taking on debt (e.g., by issuing new bonds) are typically seen as positive news as it can signal the company is creditworthy and is raising capital
What Is Deal Flow Deal flow is a term used by investment bankers and venture capitalists to describe the rate at which business proposals and investment pitches are being received. Rather than a rigid quantitative measure, the rate of deal flow is somewhat qualitative and is meant to indicate whether business is good or bad.
What Is a Deal Slip? A deal slip is a record of the details of foreign exchange (FX) transactions and is the primary way for forex brokers to maintain accurate records. Depending on the regulations in the jurisdiction of record, retention of each deal slip must be kept for a specific period of time. While used in foreign
What Is De-Anonymization? De-anonymization is a technique used in data mining that attempts to re-identify encrypted or obscured information. De-anonymization, also referred to as data re-identification, cross-references anonymized information with other available data in order to identify a person, group, or transaction. Key Takeaways De-anonymization is the practice of re-constituting the private information stored in encrypted or otherwise
What Is a Death Benefit? A death benefit is a payout to the beneficiary of a life insurance policy, annuity, or pension when the insured or annuitant dies. For life insurance policies, death benefits are not subject to income tax and named beneficiaries ordinarily receive the death benefit as a lump-sum payment. The policyholder can structure
What Is a Death Cross? The “death cross” is a market chart pattern reflecting recent price weakness. It refers to the drop of a short-term moving average—meaning the average of recent closing prices for a stock, stock index, commodity or cryptocurrency over a set period of time—below a longer-term moving average. The most closely watched
