Secured Loans
Guaranteed investment contract (GIC)
A pure investment product in which a life company agrees, for a single premium,
to pay the principal amount of a predetermined annual crediting (interest) rate
over the life of the investment, all of which is paid at the maturity date.
Guaranteed Mortgage Certificates (GMC)
First issued by Freddie Mac in 1975, G.M.C.s, like PCs, represent undivided
interest in specified conventional whole loans and participations previously
purchased by Freddie Mac.
Guarantor program
Under the (Federal Home Loan Mortgage Corporation) Freddie Mac program, the
aggregation by a single issuer (usually an S&L) for the purpose of forming a
qualifying pool to be issued as PCs under the Freddie Mac guarantee.
List of all words beginning with H:
H
Fifth letter of a NASDAQ stock symbol specifying that it is the second preferred
bond of the company.
Haircut
The margin or difference between the actual market value of a security and the
value assessed by the lending side of a transaction (i.e. a repo).
Handle
The whole-dollar price of a bid or offer is referred to as the handle (ie. if a
security is quoted at 101.10 bid and 101.11 offered, 101 is the handle). Traders
are assumed to know the handle. See: Full
Hard capital rationing
Capital rationing that under no circumstances can be violated.
