The Risk Limited Glossary
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Ted Spread - the difference between Treasury bill and eurodollar futures prices. A widening TED Spread is seen as an indication of credit quality concerns in the banking sector.
Tenor - the time remaining to maturity for a financial instrument, transaction, asset or liability, or a portfolio of these items.
Theta - sensitivity of an option's value to a change in the amount of time remaining until expiration.
Time Decay - the tendency of an option to decline in value as the expiration date approaches, especially if the price of the underlying instrument is exhibiting low volatility.
Total Return Swap - a type of credit derivative.
Tolling - an agreement between an electric power generator and a power buyer in which the buyer supplys the fuel (such as natural gas) and receives an amount of electric power based upon an agreed heat rate (conversion efficiency).
Total Return Swap - a type of credit derivative.
Transmix - a by-product of refined petroleum products pipeline operations. Transmix of refined petroleum products is created by the mixing (co-mingling) of different specification products during pipeline transportation.
Triple Witching Hour - the final hour of the stock market trading session on the third Friday of March, June, September, and December, when option contracts and futures contracts expire on market indexes used by program traders.
Transformation - the process of coverting lists into other lists, or variables into other variables (e.g. to transform a list of Celsius temperatures into the corresponding list of Fahrenheit temperatures, one would multiply each element by 9/5, and add 32 to each product).
Tranche - the piece, portion or slice of a deal or structured financing.
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