What Is a Semivariance? Semivariance is a measurement of data that can be used to estimate the potential downside risk of an investment portfolio. Semivariance is calculated by measuring the dispersion of all observations that fall below the mean or target value of a set of data. Semivariance is an average of the squared deviations
What Is a Senior Bank Loan? A senior bank loan is a debt financing obligation issued to a company by a bank or similar financial institution and then repackaged and sold to investors. The repackaged debt obligation consists of multiple loans. Senior bank loans hold legal claim to the borrower’s assets above all other debt
What Is a Senior Convertible Note? A senior convertible note is a debt security that contains an option in which the note will be converted into a predefined amount of the issuer’s shares. A senior convertible note has priority over all other debt securities issued by the same organization. Just like any other debt investment
What Is Senior Debt? Senior debt is borrowed money that a company must repay first if it goes out of business. Each type of financing has a different priority level in being repaid if the company goes out of business. If a company goes bankrupt, the issuers of senior debt, which are often bondholders or
What Is a Senior Note? A senior note is a type of bond that takes precedence over other debts in the event that the company declares bankruptcy and is forced into liquidation. Because they carry a lower degree of risk, senior notes pay lower rates of interest than junior bonds. Key Takeaways Senior notes are
What is a Senior Stretch Loan? A senior stretch loan is a type of hybrid loan structure offered primarily to middle-market companies to finance leveraged buyouts (LBOs). Similar to “unitranche” financing, the senior stretch loan combines senior debt and junior (or subordinated debt) into one package, typically at a lower average cost to the borrower
What Is Seed Capital? The term seed capital refers to the type of financing used in the formation of a startup. Funding is provided by private investors—usually in exchange for an equity stake in the company or for a share in the profits of a product. Much of the seed capital a company raises may
What Is a Seed Stock? Seed stock refers to stocks issued by publicly traded companies that operate within the agriculture industry. These companies specialize in plant research and development (R&D). Most R&D has the aim of producing higher yields from crops. Companies may develop and market specialized seeds, which have been engineered to withstand certain conditions
What Is a See-Through Trust? A see-through trust is a vehicle through which individuals may pass retirement assets from their individual retirement accounts (IRAs), via a trust, to their chosen beneficiaries. See-through trusts let IRA owners choose who will be the beneficiaries of the account after the owner is deceased. But very specific limitations and
What Is Segment Margin? Segment margin is the amount of profit or loss produced by one component of a business. With large companies, just knowing the gross margin for the entire business is not always enough. Knowing the segment margins for each division of the company that generates both expenses and revenues provides a more
