Premium and Prime brokerage: Difference between pages

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1. ''Options.''
1.


The amount payable by the buyer of an option to the option writer for the right to deal on the terms contained in the option.
Prime brokerage is a service to large institutional investors, including hedge funds.


It includes securities lending and custody.


2. ''Insurance.''


The amount payable by an insured to the insurer in return for the protection set out in the terms of the insurance policy.
2.


 
'Prime brokerage' can also refer to the business unit which provides prime brokerage services.
3. ''Bonds.''
 
A bond trading in the market ''at a premium'' has a market value greater than its par value.
 
 
4. ''Foreign currency.''
 
A foreign currency trading ''at a premium'' in the forward foreign exchange market is stronger in the forward market, than in the spot market.
 
 
5.  ''Product & service quality.''
 
Higher-quality, in relation to a product or service.
 
The premium quality is normally reflected in higher pricing or other additional costs.
 
 
6.  ''Price reflecting benefits.''
 
An additional amount within a purchase price, reflecting additional benefits.
 
For example, a control premium in valuing a company.
 
 
7.  ''Price reflecting market conditions.''
 
An additional amount within a purchase price, reflecting market conditions such as an increase in demand.
 
 
:<span style="color:#4B0082">'''''Warehousing space at a premium'''''</span>
 
:"... if a logistics business saw reducing its warehousing capacity as a way to reduce costs in March 2020, it may have regretted that decision as internet volumes – which require large amounts of warehousing capacity – soared during the year, and as the world opens up, warehousing space is now at a premium.
 
:The message is: preserve cash to meet an objective, not just for the sake of it in itself."
 
:''Gary Slawther, interim group treasurer - The Treasurer, Issue 2, June 2021, p37''
 
 
8. ''Investment returns''.
 
Additional return required or expected by investors in certain assets.
 
For example, a term premium on longer maturity bonds.




== See also ==
== See also ==
* [[Bond]]
* [[Broker]]
* [[Control premium]]
* [[Brokerage]]
* [[Discount]]
* [[Custody]]
* [[Excess]]
* [[FX prime broker]] (FXPB)
* [[Foreign currency]]
* [[Hedge fund]]
* [[Forward premium]]
* [[Internalisation]]
* [[Greenium]]
* [[Internalisation risk]]
* [[Insurance]]
* [[Liquidity risk]]
* [[Market value]]
* [[Prime]]
* [[Option]]
* [[Securities lending]]
* [[Option holder]]
* [[Par value]]
* [[Premium Listing]]
* [[Redemption]]
* [[Return]]
* [[Term premium]]


[[Category:Long_term_funding]]
[[Category:Financial_products_and_markets]]
[[Category:Manage_risks]]
[[Category:The_business_context]]
[[Category:Risk_frameworks]]

Latest revision as of 14:13, 30 October 2023

1.

Prime brokerage is a service to large institutional investors, including hedge funds.

It includes securities lending and custody.


2.

'Prime brokerage' can also refer to the business unit which provides prime brokerage services.


See also