Covered position and Loan to value: Difference between pages

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A market position which is matched and offset by another market position, substantially eliminating the risk of adverse movements in the related market prices.
''Banking.''
 
(LTV).
 
Loan To Value is the ratio of the amount of a mortgage loan to the value of the residential property, or other asset, on which it is secured.
 
The lower the LTV, the lower the risk for the lender.
 


== See also ==
== See also ==
* [[Covered interest arbitrage]]
* [[Covenant]]
* [[Market price]]
* [[Foreclosure]]
* [[Uncovered]]
* [[MBS]]
* [[Mortgage]]
* [[Risk]]
* [[Security]]


[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 11:06, 4 May 2020

Banking.

(LTV).

Loan To Value is the ratio of the amount of a mortgage loan to the value of the residential property, or other asset, on which it is secured.

The lower the LTV, the lower the risk for the lender.


See also