Alphabetical - R

RAFT	Revolving Acceptance Facility by Tender
Rainbow Option	An option whose payoff is dependent on two or more underlying variables.
Range-Forward Contract	The combination of a long call and short put or the combination of a short call and long put.
Rating Agency	Such as Moodys, Standard & Poors and Fitch which rate the default risk on corporate and soverign debt.
Real Interest Rate	The return on an investment once the effect of inflation is taken into account.
Rebalancing	The process of adjusting a trading position periodically. Usually the purpose is to maintain delta neutral.
Redeem	Buy back or pay off.
Redeemable	Applied to a preference share or bond - may be redeemed by the issuer on terms stated at outset.
Redemption	??
Redemption Date	??
Redemption Yield	??
Registered	??
Repayment Mortgage	Mortgage on which capital and interest are gradually repaid.
Repo	??
Repo Rate	The rate of interest in a repo transation.
Repurchase Agreement	Selling securities and agreeing to buy then back at a slightly higher price.
Reset Date	The date in a swap or cap or floor when the floating rate for the next period is set.
Residual Risk	??
Retained Earnings	Past profits which the company has not distributed to shareholders.
Reversion Level	The level that the value of a market variable (e.g. an interest rate) tends to revert.
Revolver Bond	A Revolver Bond is a variant of a regular Bond or other debt security.
Revolving Credit	A commitment to lend on a recurring basis on pre-defined terms
Rho	Rate of change of the price of a derivative with the interest rate.
Rights Issue	An offer of shares for cash to existing shareholders in proportion to their existing holdings (e.g. 2 for 1). An issue to existing shareholders of a security giving them the right to buy new shares at a certain price.
Risk	Government transactions are regarded as the safest and therefore have the lowest rates of interest
Risk Free Rate	The rate of interest that can be earned without assuming any risk.
Risk Management	??
Risk Neutral Valuation	The valuation of an option or other derivative assuming the world is risk neutral. Risk-neutral valuation gives the correct price for a derivtaive in all worlds, not just in the risk-neutral world.
Risk Neutral World	A world where investors are assumed to require no extra return on average for bearing risks.
Risk Premium	The expected rate of return above the risk free interest rate.
Risk Weighted Assets	RWA is the aggregate measure of different risk factors affecting the evaluation of financial products.
Roll Back	see Backwards induction
Rolling Over	Renewal of a bank loan with alteration of interest rate as per the agreed formula, for example LIBOR + 1%
Rolling Settlement	For example '5 working days' that is the deal on Tuesday, settle next Tuesday, deal Wednesday, settle next Wednesday, instead of all deals within a given 'account' being settled on a given day
Rollover	In exchange traded derivatives, rolling a position from one expiry or delivery month to the next.
RORAC	Return On Risk Adjusted Capital
RUF	Revolving Underwriting Facility
Running Yield	Flat Yield

RAFT Revolving Acceptance Facility by Tender
Rainbow Option An option whose payoff is dependent on two or more underlying variables.
Range-Forward Contract The combination of a long call and short put or the combination of a short call and long put.
Rating Agency Such as Moodys, Standard & Poors and Fitch which rate the default risk on corporate and soverign debt.
Real Interest Rate The return on an investment once the effect of inflation is taken into account.
Rebalancing The process of adjusting a trading position periodically. Usually the purpose is to maintain delta neutral.
Redeem Buy back or pay off.
Redeemable Applied to a preference share or bond - may be redeemed by the issuer on terms stated at outset.
Redemption ??
Redemption Date ??
Redemption Yield ??
Registered ??
Repayment Mortgage Mortgage on which capital and interest are gradually repaid.
Repo ??
Repo Rate The rate of interest in a repo transation.
Repurchase Agreement Selling securities and agreeing to buy then back at a slightly higher price.
Reset Date The date in a swap or cap or floor when the floating rate for the next period is set.
Residual Risk ??
Retained Earnings Past profits which the company has not distributed to shareholders.
Reversion Level The level that the value of a market variable (e.g. an interest rate) tends to revert.
Revolver Bond A Revolver Bond is a variant of a regular Bond or other debt security.
Revolving Credit A commitment to lend on a recurring basis on pre-defined terms
Rho Rate of change of the price of a derivative with the interest rate.
Rights Issue An offer of shares for cash to existing shareholders in proportion to their existing holdings (e.g. 2 for 1). An issue to existing shareholders of a security giving them the right to buy new shares at a certain price.
Risk Government transactions are regarded as the safest and therefore have the lowest rates of interest
Risk Free Rate The rate of interest that can be earned without assuming any risk.
Risk Management ??
Risk Neutral Valuation The valuation of an option or other derivative assuming the world is risk neutral. Risk-neutral valuation gives the correct price for a derivtaive in all worlds, not just in the risk-neutral world.
Risk Neutral World A world where investors are assumed to require no extra return on average for bearing risks.
Risk Premium The expected rate of return above the risk free interest rate.
Risk Weighted Assets RWA is the aggregate measure of different risk factors affecting the evaluation of financial products.
Roll Back see Backwards induction
Rolling Over Renewal of a bank loan with alteration of interest rate as per the agreed formula, for example LIBOR + 1%
Rolling Settlement For example '5 working days' that is the deal on Tuesday, settle next Tuesday, deal Wednesday, settle next Wednesday, instead of all deals within a given 'account' being settled on a given day
Rollover In exchange traded derivatives, rolling a position from one expiry or delivery month to the next.
RORAC Return On Risk Adjusted Capital
RUF Revolving Underwriting Facility
Running Yield Flat Yield