Secured Loans
Performance measure invented by John Graham and Campbell Harvey. The idea
is to lever the S&P 500 portfolio to exactly match the volatility of the fund. The
difference between the funds return and the levered S&P 500 return is the
performance measure.
Grantor trust
A mechanism of issuing MBS wherein the mortgages collateral is deposited with
a trustee under a custodial or trust agreement.
Graveyard market
Used in the context of general equities. Bear market wherein investors who sell
are faced with substantial losses, while potential investors prefer to stay liquid;
that is, to keep their money in cash or cash equivalents until market conditions
improve.
Gray market
Purchases and sales of Eurobonds that occur before the issue price is finally set.
Great call
Used in the context of general equities. Customer does not have a working order
in with the trader, but we feel has an interest in participating in a trade being
constructed due to ones past inquiry or activity.
Greenmail
Situation in which a large block of stock is held by an unfriendly company, forcing
the target company to repurchase the stock at a substantial premium to prevent a
takeover.
Greenshoe option
Option that allows the underwriter for a new issue to buy and resell additional
shares.
Grey list
Used in the context of general equities. Formal grouping of stocks which can be
traded by the block desks, but not in risk arbitrage due to an Investment banks
0involvement with the company on non-public activity (i.e., Mergers and
Acquisitions defense). A stocks being on this list should never be conveyed to
anyone outside of the trading area, much less outside of the firm. See restricted
list.
