What is ‘Flextime’ Flextime is a work policy that allows employees to choose the times in which they work during the day. Flextime may mandate that employees be in the office during certain hours to allow for meetings and collaboration. However, flexibility is allowed for employees to schedule the remainder of their work day depending on … Read more

Accrual Swap

DEFINITION of ‘Accrual Swap’ An accrual swap is a type of interest rate swap in which the interest on one side accrues only if certain conditions are met. Payment of interest in the accrual swap occurs if the reference rate, such as the London Interbank Offered Rate (LIBOR) or Euro Interbank Offer Rate (EURIBOR), is … Read more

Biotech Compound

WHAT IS ‘Biotech Compound’ Biotech compound refers to a chemical that shows potential for therapeutic application in the earliest stage of the development process. This stage is known as the drug discovery phase. It involves experimental modifications to the compound to identify the most promising candidate for further research in the next stage, known as … Read more

Filing Extension

WHAT IS ‘Filing Extension’ A filing extension is an exemption made to both individual taxpayers and businesses that are unable to file a tax return by the due date. Individuals can complete and file IRS Form 4868 by the regular date of their return, which is usually April 15, for an automatic six-month extension. Most … Read more

Add-On Factor

DEFINITION of ‘Add-On Factor’ The add-on factor is the number of usable square feet in a commercial property divided by the number of rentable square feet. The result of this calculation will be 1 if the two numbers are identical, but it is always lower than 1 because some square footage in a building will … Read more

Public Securities Association Standard Prepayment Model – PSA

What is ‘Public Securities Association Standard Prepayment Model – PSA’ The Public Securities Association Standard Prepayment Model (PSA) is assumed monthly rate of prepayment that is annualized to the outstanding principal balance of a mortgage loan. The Public Securities Association Standard Prepayment Model (PSA) is one of several models used to calculate and manage prepayment … Read more

Single Net Lease

DEFINITION of ‘Single Net Lease’ A single net lease is a commercial real estate lease agreement in which the tenant agrees to pay property taxes in addition to rent. A single net lease is a form of pass through lease in which taxes associated with the property become the responsibility of the tenant instead of … Read more

Forward Commitment

DEFINITION of ‘Forward Commitment’ A forward commitment refers to a contractual agreement to between a buyer and seller. A forward commitment will specify the commodity or good being sold, the price, payment date and delivery date. Forward commitments are contained within several types of derivatives, including forward contracts, futures contracts and swaps. BREAKING DOWN ‘Forward … Read more

Flow Derivative

DEFINITION of ‘Flow Derivative’ A flow derivative is a securitized product that aims to provide maximum leverage to profit from small movements in the market value of the underlying. Flow derivatives are based off the value of currencies that are associated with a set of assets. Some popular flow derivatives include vanilla options, leveraged synthetic … Read more

Bilateral Extended Reporting Period Provision

DEFINITION of ‘Bilateral Extended Reporting Period Provision’ Bilateral Extended Reporting Period Provision is a reporting period extension provided to policyholders in claims-made liability insurance policies. These provisions apply to claims made after the retroactive date, and after the policy has been canceled, non-renewed, or changed to a different type of liability policy. Also called two-tail … Read more