Secured Loans
Government bond
See: Government securities.
Government National Mortgage Association (Ginnie Mae)
A wholly owned U.S. government corporation within the Department of Housing
& Urban Development. Ginnie Mae guarantees the timely payment of principal
and interest on securities issued by approved servicers that are collateralized by
FHA-issued, VA-guaranteed, or Farmers Home Administration (FmHA)-
guaranteed mortgages.
Government securities
Negotiable U.S. Treasury securities.
Government sponsored enterprises
Privately owned, publicly chartered entities, such as the Student Loan Marketing
Association, created by Congress to reduce the cost of capital for certain
borrowing sectors of the economy including farmers, homeowners, and students.
GPM
See: Graduated Payment Mortgages
Graduated-payment mortgages (GPMs)
A type of stepped-payment loan in which the borrowers payments are initially
lower than those on a comparable level-rate mortgage. The payments are
gradually increased over a predetermined period (usually 3,5, or 7 years) and
then are fixed at a level-pay schedule which will be higher than the level-pay
amortization of a level-pay mortgage originated at the same time. The difference
between what the borrower actually pays and the amount required to fully
amortize the mortgage is added to the unpaid principal balance.
Graham-Harvey Measure 1
Performance measure invented by John Graham and Campbell Harvey. The idea
is to lever a funds portfolio to exactly match the volatility of the S&P 500. The
difference between the funds levered return and the S&P 500 return is the
performance measure.
