Glossary

Sale and leaseback

A sale and leaseback is a process which allows any entity to raise money from the sale of assets, while retaining use of them by paying lease rental.

Sinking Fund

A fund to which money is added on a regular basis that is used to ensure investor confidence that promised payments will be made and that is used to redeem debt securities or preferred stock issues.

Spin Off

Companies sometime separate out one area of their operations and assets into a new company. The proportionately distribute shares in the new company to their own shareholders.

Standstill Agreement

A contract that stalls or stops the process of a hostile takeover. The target firm either offers to repurchase the shares held by the hostile bidder, usually at a large premium, or asks the bidder to limit itsĀ holdings. This act will stop the current attack and give the company time to take preventative measuresĀ against future takeovers.

Stapled Security

A security which is comprised of two parts that cannot be separated from one another. The resulting security is influenced by both parts, and must be treated as one unit at all times, such as when buying or selling the security.

Step-up bond

A bond that pays an initial coupon rate for the first period, and then a higher coupon rate for the following periods.

Sub Lease

A sublease is a contract used by a tenant or lessee to lease a portion of its leased property to another entities.

Sukuk

Sukuk is a Arabic terminology used to represent the financial instruments, Commonly known as Islamic Bonds. According the investment principles under Islamic law the Islamic the bonds comply with structured strategies and fixed income or plain bonds are not permissible.

Suspension Event

Any event that places the Customer in breach of their obligations under this Agreement legal Suspension of a debt agreement by a creditor.

Swap Amend

Any revision or amendments made to the swap agreement is known as Swap Amend.

Swap Spread

The difference between the swap rate and the lending rate offered through other investment vehicles with comparable characteristics.

Swap Transaction

A kind of financial transaction which has many variations, usually highly complex. They generally involve a simultaneous exchange of assets (the swap) by counterparties for other different assets of comparable value. The assets may be commodities or they may be financial instruments involving interest rates, cash flows, foreign exchange, debts or equities. In addition to financial profits, the swaps have many purposes such as limiting risks, overcoming restrictions in certain markets, or balancing portfolios.