Secured Loans
See:diversifiable risk or unsystematic risk.
First-call
With collateralized mortgage obligation (C.M.O.s), the start of the cash flow cycle
for the cash flow window.
First-In-First-Out (FIFO)
An accounting method for valuing the cost of goods sold that uses the cost of the
oldest item in inventory first.
First notice day
The first day, varying by contracts and exchanges, on which notices of intent to
deliver actual financial instruments or physical commodities against futures are
authorized.
First-pass regression
A time series regression to estimate the betas of securities portfolios.
Fiscal agency agreement
An alternative to a bond trust deed. Unlike the trustee, the fiscal agent acts as an
agent of the borrower.
Fiscal policy
The use of government spending and taxing for the specific purpose of stabilizing
the economy.
Fisher effect
A theory that nominal interest rates in two or more countries should be equal to
the required real rate of return to investors plus compensation for the expected
amount of inflation in each country.
Fishers separation theorem
The firms choice of investments is separate from its owners attitudes towards
investments. Also referred to as portfolio separation theorem.
