T

1 TAC

Targeted amortization class (TAC) mortgage-backed securities in which payments are guaranteed for one specific prepayment rate.

2 Tail VaR

The expected loss conditional upon the VaR loss being exceeded. [See also Value at risk]

3 Tailing

A reduction in the quantity of an asset held in order to offset future income received by the asset.

4 Take-and-Pay Option

[See Swing option]

5 Takedown Risk

In making the loan commitment, the financial institution must always stand ready to provide the maximum of commitment line. The borrower has the flexible option to borrow anything between $0 and the commitment amount ($5 million for example) on any business day in the commit period. This exposes the FI to a degree of future liquidity risk or uncertainty, i.e., takedown risk.

6 Takeover

General term referring to transfer of control of a firm from one group of shareholders to another. Takeover can occur by acquisition, proxy contests, and going-private transaction. Thus, takeover encompasses...