Crack spread is a term used in oil futures trading and is derived from the chemical process of cracking (heating crude oil to certain temperatures to distill off different grades of fuel). A...
A covenant is a term used in loan documents (for example in an LBO) and any other kind of bond issuance and it dictates any terms of a corporate takeover or acquisition or bond repayment. The cov...
Covariance is a statistical term used in security and portfolio evaluation, and it measures the amount which two assets move in relation to each other. A positive covariance means the assets move in t...
The coupon rate is the interest that a bond pays when it is issued. ...
The coupon rate is the interest that a bond pays when it is issued. For example, a $100,000 bond with a coupon rate of 2.5% will pay $2500 per year. The interest is usually split into several payments...
Counterparty Risk is the risk that an investor is exposed to when taking out any kind of contractual position (CDS, option, future etc.) The risk is that one (or both) of the parties involved will not...
Cost of Goods Sold (or COGS) is the total cost of sales for the entire output of a company. It is the sum of the cost of each good sold. This is another crucially important financial figure for analys...
Cost of Equity is a measure used in analysis and valuation which tells you the rate of return required by an investor (including dividends) to incentivize them to take the risk of investing in the com...
Convertible bonds are a security which is issued by a company as a means of raising money. They are essentially a combination of debt and equity. Convertibles are issued as bonds with an interest rate...
Convergence is when two items move in different directions to each other but towards the same point. In finance the term convergence is applied to assets, indicators and indices.Convergence can provid...