Secured Loans
Equivalent bond yield
Annual yield on a short-term, non-interest bearing security calculated in order to
be comparable to yields quoted on coupon securities.
Equivalent loan
Given the after-tax stream associated with a lease, the maximum amount of
conventional debt that the same period-by-period after-tax debt service stream is
capable of supporting.
Equivalent taxable yield
The yield that must be offered on a taxable bond issue to give the same after-tax
yield as a tax-exempt issue.
ERM
See: Exchange Rate Mechanism
Erosion
An innovation that has a negative impact on one or more of a firms existing
assets.
ESOP
See: Employee Stock Ownership Plan
Ethics
Standards of conduct or moral judgement.
EU
See: European Union
EUREX
The European derivatives exchange formed in 1998 following the merger of the
Deutsche Terminbörse (DTB) and the Swiss Options and Financial Futures
Exchange (SOFFEX).
