Derivative instrument and Pension Benefit Guaranty Corporation: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Link with Margining page.)
 
imported>Doug Williamson
m (Organisation check 6/5/13 - no change)
 
Line 1: Line 1:
A derivative instrument or contract is one whose value and other characteristics are derived from those of another asset or instrument (sometimes known as the Underlying Asset).
(PBGC). ''US Pensions''. 
An organisation set up by the US government to take over the assets and liabilities of insolvent pension funds and to provide limited guarantees as to the payment of pensions by those funds.


Derivative instruments are widely used by non-financial corporates for hedging purposes.
The PBGC has wide powers to investigate US pension schemes and their sponsoring companies.
 
 
<span style="color:#4B0082">'''Example'''</span>
 
A share option is a type of derivative contract, allowing the holder to buy shares at a certain predetermined strike price.
 
The value of the share option derives from the current price of the related underlying share relative to the option strike price.


The equivalent in the UK is the Pension Protection Fund.


== See also ==
== See also ==
* [[CCR]]
* [[Pension Protection Fund]]
* [[Collateral]]
* [[Commodity risk]]
* [[CP]]
* [[Credit support annex]]
* [[Embedded derivative]]
* [[ETD]]
* [[FC]]
* [[Fixing instrument]]
* [[FVTOCI]]
* [[FVTPL]]
* [[Hedge fund]]
* [[Hedging]]
* [[IR]]
* [[ISDA Master Agreement]]
* [[Margining]]
* [[Mark to market]]
* [[Maturity]]
* [[Notional principal]]
* [[Option]]
* [[Outright]]
* [[Potential Future Exposure]]
* [[Replacement cost]]
* [[Strike price]]
* [[Tracker fund]]
* [[Transfer]]
* [[Underlying]]
* [[Underlying asset]]
* [[Underlying price]]
* [[XVA]]
 
 
===Other links===
*[http://www.treasurers.org/node/8599  Masterclass: Derivatives, The Treasurer, December 2012]
 
[[Category:Risk_frameworks]]

Revision as of 13:57, 6 May 2013

(PBGC). US Pensions. An organisation set up by the US government to take over the assets and liabilities of insolvent pension funds and to provide limited guarantees as to the payment of pensions by those funds.

The PBGC has wide powers to investigate US pension schemes and their sponsoring companies.

The equivalent in the UK is the Pension Protection Fund.

See also