Andrew Vaughey

Andrew Barrett Vaughey

Guarantor program
Under
the Freddie Mac program, the aggregation by a single issuer (usually an S&L)
for the purpose of forming a qualifying pool to be issued as PCs under the
Freddie Macguarantee.

Soft currency
The money of a country that is
expected to drop in value relative to other currencies.

Andrew Vaughey

Riding the yield curve
Buying
long-termbonds in anticipation of capital gains as yields fall with the
declining maturity of the bonds.

No Substitution
Within the text on
a proxy card are the words: "The shareholder appoints certain people
(collectively, the proxy committee) with full power of substitution to vote the
shares." If the security holder strikes out this phrase, the proxy cannot be
voted if there is a change in the designated proxy committee.

Momentum

The amount of acceleration of an economic, price, or volume movement. A
trader that follows a movement strategy will purchasestocks that have recently
risen in price.

Andrew Vaughey
Maturity
For a bond, the date on which the principal is required to be
repaid. In an interest rate swap, the date that the swap stops accruing
interest.

House maintenance requirement
The internal rules of a
brokerage house that govern the minimum amount of equity that must be present in
a customer's margin account.

Wasting asset
An asset that has a
limited life and thus decreases in value (depreciates) over time. Also applies
to consumed assets, such as oil or gas, and termed "depletion."