金融英语专业词汇

FRM一级培训项目金融英语<基础词汇>金融基础词汇Risk

appetitePhonetic

symbol:英[rɪsk

'æpɪtaɪt];美[rɪsk'æpəˌtaɪt]Paraphrase:The

company's

risk

appetite

reflects

its

tolerance(willingness)

to

accept

risk.Example:Business

strategy

planning

meetings

from

theoutset

require

the

riskmanagement

team

toensure

that

risk

appetite

and

business

strategyconsistency.金融基础词汇Default

riskPhonetic

symbol:英[dɪ'fɔːlt

rɪsk];

美[dɪ'fɔlt

rɪsk]Paraphrase:Default

risk

corresponds

to

the

debtor’s

incapacityor

refusal

to

meet

his/her

debt

obligations,whether

interest

or

principal

payments

on

the

loan

contracted,

by

more

than

a

reasonable

reliefperiod

from

the

due

date,

which

is

usually

60

daysin

the

banking

industry

.Example:The

most

direct

measure

of

country

riskis

ameasure

of

default

risk

when

lendingto

theernment

of

that

country.金融基础词汇HedgerPhonetic

symbol:英['hedʒə];美['hedʒə]Paraphrase:n.

Hedgers

use

derivatives

to

reduce

the

riskthatthey

face

from

potential

future

movements

in

amarket

variable.Example:This

means

that

the

hedger

must

estimate

whichof

the

available

bonds

is

likely

to

be

cheapest

todeliver

at

the

time

the

hedge

is

put

in

place.金融基础词汇SpeculatorPhonetic

symbol:英['spekjʊleɪtə];美['spɛkjuletɚ]Paraphrase:n.

Speculators

use

them

to

bet

on

the

futuredirection

of

a

market

variable.Example:Whereas

hedgers

want

to

avoid

exposure

toadverse

movements

in

the

price

of

an

asset,speculators

wish

to

take

a

position

in

the

market.

.金融基础词汇ArbitrageurPhonetic

symbol:英[,ɑ:bitræ'ʒə:];美[,ɑ:bitræ'ʒə:]Paraphrase:n.

A

rbitrageurs

take

offsetting

positions

in

twoor

more

instruments

to

lock

in

a

profit.Example:Arbitrageurs

are

athirdimportant

groupofparticipants

in

futures,

forward,

and

optionsmarkets.金融基础词汇Market

makerPhonetic

symbol:英['mɑːkɪt'meɪkə];美['mɑrkɪt'mekɚ]Paraphrase:A

market

maker

for

a

certain

option

will

quoteboth

a

bid

and

an

offer

price

on

the

option.

At

thetime

the

bid

and

offer

prices

are

quoted,

themarket

maker

does

not

know

whether

the

traderwho

asked

for

the

quotes

wants

to

buy

or

sell

theoption.Example:For

this

reason,

many

large

financial

institutionsa market

makers

for

swaps.金融基础词汇SecuritizationPhonetic

symbol:英[sɪkjʊərɪtʌɪˈzeɪʃ(ə)n];美[sɪ'kjʊrətɪzeɪʃn]Paraphrase:n.

A

process

that

involves

moving

assets

into

aspecial

legal

entity,

which

then

uses

the

assets

asguarantees

to

secure

a

bond

issue.Etyma:SecurityExample:He

plans

to

hold

a

hearing

on

securitization

nextmonth

to

find

out

why

consumers

and

businessesare

still

having

so

much

trouble

getting

loans金融基础词汇Survivorship

biasPhonetic

symbol:英[sə'vaɪvəˌʃɪp

ˈbaɪəs];美[sə'vaɪvəˌʃɪp

ˈbaɪəs]Paraphrase:n.

The

bias

resulting

from

a

test

design

that

failsto

account

for

companies

that

have

gonebankrupt,

merged,

or

are

otherwise

no

longerreported

in

a

database.Example:You've

got

survivorship

bias

taking

out

badrecords

and

then

you've

got

backfill

bias

addinggood

records.金融基础词汇Bid–ask

spreadPhonetic

symbol:英[ˈæktiv

inˈvestmənt];美[ˈæktɪv

ɪnˈvɛstmənt]Paraphrase:n.

The

difference

between

the

prices

at

whichdealers

will

buy

from

a

customer

(bid)

and

sell

toa

customer

(offer

or

ask).

It

is

often

used

as

anindicator

of

liquidity.Example:By

comparison,

the

bid-ask

spread

for

the

largemuch

traded

SPDRis

a

very

reasonable

1

cent

andeven

very

large

trades

will

not

move

the

market.金融基础词汇Convenience

yieldPhonetic

symbol:英[kənˈvi:niəns

jiːld];美[kənˈvinjəns

jild]Paraphrase:n.

A

non-monetary

advantage

of

holding

an

asset.Example:We

found

that

the

convenience

yield

waspositively

correlated

to

thespot

price

butnegatively

correlated

to

spot

volatility.金融基础词汇In

the

moneyPhonetic

symbol:英[ɪn

ðə'mʌnɪ];美[ɪn

ðə'mʌni]Paraphrase:Immediate

exercise

would

generate

a

positivepayoff.Example:Many

exchanges

also

have

rules

for

exercisingoptions

that

are

in

the

money

at

expiration.金融基础词汇Out-of-the-moneyPhonetic

symbol:英['aʊt'əv

ðə

m'ʌnɪ];美['aʊt'əv

ðə

m'ʌnɪ]Paraphrase:adj.

Options

that,

if

exercised,

would

require

thepayment

of

more

money

than

the

value

receivedand

therefore

would

not

be

currently

exercised.Antonym:In-the-money,

at-the-moneyExample:Ifyouhave

large

investment

in

this

asset

class,

aportion

of

the

interest

earned

can

be

invested

inout-of-the-money

gold

calls.金融基础词汇Mean

reversionPhonetic

symbol:英[mi:n

rɪˈvɜ:ʒən];美[min

rɪˈvə:ʒən]Paraphrase:n.

In

finance,

mean

reversion

is

the

assumptionthat

a

stock's

price

will

tend

to

move

to

theaverage

price

over

time.Example:Mean

reversion

works

almost

all

of

the

time.金融基础词汇Basis

riskPhonetic

symbol:英[ˈbeisis

risk];美[ˈbesɪs

rɪsk]Paraphrase:n.

Basis

risk

is

the

financial

risk

that

offsettinginvestments

in

a

hedging

strategy

will

notexperience

price

changes

in

entirely

oppositedirections

from

each

other.Example:According

to

its

different

sources,

interest

rate

riskmay

be

classified

into

repricing

risk,

yield

curverisk,

basis

risk

and

optionality.金融基础词汇Implied

volatilityPhonetic

symbol:英[ɪm'plaɪd

ˌvɒlə'tɪlətɪ];美[ɪm'plaɪd

ˌvɒlə'tɪlətɪ]Paraphrase:n.

Implied

volatility

is

the

estimated

volatility

of

asecurity's

price.Example:Only

rarely,

as

on

February

27th,

does

the

curve“invert”

so

that

short-term

implied

volatility

ishigher

than

long-term.金融基础词汇ContangoPhonetic

symbol:英[kən'tæŋgəʊ];美[kən'tæŋgo]Paraphrase:n.

If

the

forward

price

is

higher

than

the

spotprice

(or

the

distant

forward

price

is

higher

thanthe

near

forward

price)

the

Futures

curve

is

said

tobe

normal,

or

in

contango.Example:This

rolling

hedge

strategy

can

be

profitable

whenmarkets

are

in

“backwardation”

,

but

whenmarkets

are

in

contango

(the

reverse

relationship)it

can

result

in

losses.金融基础词汇BackwardationPhonetic

symbol:英[bækwə'deɪʃ(ə)n];美[bækwə'deɪʃ(ə)n]Paraphrase:n.

If

the

forward

price

is

less

than

the

spot

price(or

the

distant

forward

price

is

less

than

the

nearforward

price),

the

Futures

curve

is

said

to

beinverted,

or

in

Backwardation.Example:The

problem

was

further

compounded

by

thechange

in

the

shape

of

the

price

curve,

whichmoved

from

backwardation

to

contango.金融基础词汇Spot

RatePhonetic

symbol:英[spɒt

reɪt];美[spɑt

ret]Paraphrase:A

t-period

spot

rate,

or

zero

rate,

denoted

as

z(t),is

the

yield

to

maturity

on

a

zero-coupon

bondthat

matures

in

t-years.Example:The

role

of

the

forward

FX

contract

is

to

offset

theuncertainty

regarding

the

future

spot

rate

onpounds

at of

the

one-year

investmenthorizon..金融基础词汇Forward

ratesPhonetic

symbol:英['fɔːwəd

reɪt];美['fɔrwɚd

ret]Paraphrase:Forward

rates

are

the

future

rates

of

interestimplied

by

current

zero

rates

for

periods

of

time

inthe

future.Example:

If

a

large

investor

thinks

that

rates

in

the

futurewill

bedifferent

from

today's

forward

rates,

there

aremany

trading

strategies

that

the

investor

will

findattractive.金融基础词汇ConvexityPhonetic

symbol:英[kən'veksɪtɪ];美[,kɑn'vɛksəti]Paraphrase:n.

A

measure

of

the

non-linear

relationshipbetween

price

and

yield.

Changes

in

duration

of

abond

to

changes

in

interest

rates,

the

secondderivative

of

the

price

of

the

bond

with

respect

tointerest

rates.Example:All

else

being

equal,

convexity

increase

for

longermaturities,

lower

coupons,

and

lower

yields.金融基础词汇Reinvestment

RiskPhonetic

symbol:英[,ri:in'vestmənt

rɪsk];

美[,ri:in'vestmənt

rɪsk]Paraphrase:Reinvestment

risk

is

the

risk

that

future

couponsfrom

a

bond

will

not

be

reinvested

at

theprevailing

interest

rate

from

when

the

bond

wasinitially

purchased.Example:Zero-coupon

bonds

are

the

only

einstrumentsto

have

no

reinvestment

risk

sincethey

have

no

interim

coupon

payments.金融基础词汇Clean

PricePhonetic

symbol:英[kliːn

praɪs];美[klin

praɪs]Paraphrase:The

price

of

a

coupon

bond

not

including

anyaccrued

interest.

Immedia y

following

eachcoupon

payment,

the

clean

price

will

equal

thedirty

price.Example:The

clean

price

is

mostly

quoted

in

the

US

bondmarkets.

Given

the

quotes,

traders

tend

to

think

ofbonds

in

terms

of

their

clean

prices..金融基础词汇Dirty

PricePhonetic

symbol:英['dɜːtɪ

praɪs];美[ˈdɝtɪ

praɪs]Paraphrase:A

bond

pricing

quote

referring

to

the

price

of

acoupon

bond

that

includes

the

present

value

of

allfuture

cash

flows,

including

interest

accruing

onthe

next

coupon

payment.Example:In

finance,

the

dirty

price

is

the

price

of

a

bondincluding

any

interest

that

has

accrued

since

issueof

the

most

recent

coupon

payment.金融基础词汇Accrued

interestPhonetic

symbol:英[ə'kru:d

ˈɪntrəst];

美[ə'krʊd

ˈɪntrɪst,-tərɪst,-ˌtrɛst]Paraphrase:n.

Interest

earned

but

not

yet

paid.Example:Accrued

interest

included

in

the

proceeds

of

issueshall

be

accounted

for

as

a

temporary

receipt

anddisclosed

under

other

payables.金融基础词汇Forward

Rate

Agreement(FRA)Phonetic

symbol:英['fɔːwəd

reɪt

ə'griːm(ə)nt];美['fɔrwɚd

retə'grimənt]Paraphrase:A

forward

rate

agreement

(FRA)

is

an

agreementth ertain

rate

will

apply

toacertainprincipalduring

a

certain

future

time

period.Example:The

buyer

of

an

FRA

locks

in

a

borrowing

rate,and

the

seller

locks

in

a

lending

rate.

The

longbenefits

from

an

increase

in

rates,

and

the

shortbenefits

from

a

fall

in

rates.金融基础词汇Close

OutPhonetic

symbol:英[kləʊs

aʊt];

美[kloz

aʊt]Paraphrase:Closing

out

a

position

means

entering

intotheopposite

type

of

trade

from

the

original.Example:Most

Futures

contracts

do

not

lead

to

delivery,because

most

trades

“close

out”

their

positionsbefore

delivery.金融基础词汇Initial

MarginPhonetic

symbol:英[ɪ'nɪʃəl'mɑːdʒɪn];美[ɪ'nɪʃəl'mɑrdʒən]Paraphrase:Initial

margin

must

be

deposited

when

contract

isinitiated.Example:A

related

point

is

that s

require

variation

andinitial

margin

in

all

situations

whereas

monolinesand

CDPCs

would

essentially

post

only

variationmargin

and

would

often

only

do

this

in

extremesituations.金融基础词汇Maintenance

MarginPhonetic

symbol:英[ˈmeɪntənəns'mɑːdʒɪn];美['mentənəns'mɑrdʒən]Paraphrase:Investor

can

withdraw

funds

in

the

marginaccount

in

excess

of

the

initial

margin.

When

thebalance

in

the

margin

account

falls

below

themaintenance

margin,

broker

executes

a

margincall.

The

next

day,

the

investor

needs

to

“top

up”the

margin

account

back

to

the

initial

marginlevel.

.Example:Minimum

levels

for

the

initial

and

maintenancemargin

areset

by

the

exchange

clearing

house.金融基础词汇VariationMarginPhonetic

symbol:英[veərɪ'eɪʃ(ə)n'mɑːdʒɪn];美[,vɛrɪ'eʃən'mɑrdʒən]Paraphrase:Variation

Margin

must

be

deposited

whencontract

is

initiated.Example:If

in

total

the

transactions

have

lost

money,

themember

is

required

to

provide

variation

margin

tothe

exchange

clearing

house.金融基础词汇Market

OrderPhonetic

symbol:英['mɑːkɪt'ɔːdə];美['mɑrkɪt'ɔrdɚ]Paraphrase:A

request

that

a

trade

be

carried

out

immedia

yat

the

best

price

available

in

the

market.Example:

In

effect,

a

stop

order es

a

market

order

assoon

as

the

specified

price

has

been

hit.金融基础词汇Limit

OrderPhonetic

symbol:英['lɪmɪt'ɔːdə];美['lɪmɪt'ɔrdɚ]Paraphrase:Limit

Order

this

order

specifiesaparticular

price,the

ordercan

be

executed

only

at

this

priceor

atone

more

favorable

to

the

investor.Example:A

buy

limit

ordercan

only

be

executed

at

thelimitprice

or

lower.金融基础词汇Convexity

adjustmentPhonetic

symbol:英[ˌkɒn'veksɪtɪ

ə'dʒʌs(t)m(ə)nt];美[ˌkɒn'veksətɪə'dʒʌstmənt]Paraphrase:n.

For

a

bond,

one

half

of

the

annual

orapproximate

convexity

statistic

multiplied

by

thechange

in

the

yield-to-maturity

squared.Example:Convexity

adjustment

refers

to

the

differencebetween

the

forward

interest

rate

and

the

futureinterest

rate.金融基础词汇Interest

Rate

ParityPhonetic

symbol:英['ɪnt(ə)rɪst

reɪt'pærɪtɪ];美['ɪntrəst

ret'pærəti]Paraphrase:A

no-arbitrage

condition

representing

anequilibrium

state

under

which

investors

will

beindifferent

to

interest

rates

available

on

bankdeposits

in

two

countries.Example:We

also

examine

the

links

between

domestic

andforeign

interest

rates

and

spot

and

forwardforeign

exchange

rates—interest

rate

parity

(IRP).金融基础词汇Interest

Rate

SwapPhonetic

symbol:英['ɪnt(ə)rɪst

reɪt

swɒp];美['ɪntrəst

ret

swɑp]Paraphrase:An

interest

rate

swap

(IRS)

is

a

popular

and

highlyliquid

financial

derivative

instrument

in

which

twoparties

agree

to

exchange

interest

rate

cash

flows,based

on

a

specified

notional

amount

from

afixedrate

to

a

floating

rate

(or

vice

versa).Example:The

most

popular

(plain

vanilla)

interest

rate

swapis

one

where

LIBOR

is

exchanged

for

a

fixed

rateof

interest.金融基础词汇Currency

SwapPhonetic

symbol:英['kʌr(ə)nsɪ

swɒp];美['kʌr(ə)nsɪ

swɑp]Paraphrase:A

currency

swap

entails

the

exchange

ofprincipaland

interest

in

one

currency

for

the

principal

andinterest

in

another

currency.Example:The

birth

of

the

over-the-counter

swap

marketcan

be

traced

to

a

currency

swap

negotiatedbetween

IBM

and

the

World

Bank

in

1981.金融基础词汇Barbell

PortfolioPhonetic

symbol:英[ˈbɑ:bel

pɔ:tˈfəʊli:ˌəʊ];美[ˈbɑrˌbɛl

pɔrtˈfoliˌo]Paraphrase:In

finance,

a

Barbell

strategy

is

formed

when

aTrader

invests

in

Long

and

Short

duration

bonds,but

does

not

invest

in

the

intermediate

durationbonds.Example:For

the

same

amount

of

duration

risk,

the

barbellportfolio

has

greater

convexity,

whi eans

thatits

value

will

increase

more

than

the

value

of

thebullet

when

rates

rise

or

fall.金融基础词汇Bullet

PortfolioPhonetic

symbol:英[ˈbʊlɪt

pɔ:tˈfəʊli:ˌəʊ];美[ˈbʊlɪt

pɔrtˈfoliˌo]Paraphrase:In

finance,

a

bullet

strategy

is

formed

when

atrader

invests

in

intermediate

duration

bonds,

butdoes

not

invest

in

the

long

and

short

durationbonds.Example:For

the

same

amount

of

duration

risk,

the

barbellportfolio

has

greater

convexity,

whi eans

thatits

value

will

increase

more

than

the

value

of

thebullet

when

rates

rise

or

fall.金融基础词汇WarrantPhonetic

symbol:英[ˈwɒrənt];美[ˈwɔ:rənt]Paraphrase:n.

Warrants

are

options

issued

by

a

financialinstitution

or

nonfinancial

corporation.Example:Warrants

are

different

from

regular

call

options

inthat

exercise

leads

to

the

company

issuing

moreshares

and

then

selling

them

to

the

option

holderfor

the

strike

price.

As

the

strike

price

is

less

thanthe

market

price,

this

dilutes

the

interest

of

theexisting

shareholders.金融基础词汇DeltaPhonetic

symbol:英[ˈdeltə]；美[ˈdɛltə]Paraphrase:n.

It

is

defined

as

the

rate

of

change

of

the

optionprice

with

respect

to

the

price

of

the

underlyingasset.Example:Suppose

that

the

delta

of

a

call

option

on

a

stockis

0.6.

This

means

that

when

the

stock

pricechanges

by

a

small

amount,

the

option

pricechanges

by

about

60%

of

that

amount.金融基础词汇Delta

NeutralPhonetic

symbol:英[ˈdeltə

ˈnju:trəl]；美[ˈdɛltə

ˈnu:trəl]Paraphrase:A

position

with

a

delta

of

zero

is

referred

to

asdelta

neutral.Example:It

is

important

to

realize

that,

since

the

delta

of

anoption

does

not

remain

constant,

the

trader'sposition

remains

delta

hedged

(or

delta

neutral)for

only

a

relatively

short

period

of

time.金融基础词汇GammaPhonetic

symbol:英[ˈgæmə]；美[ˈɡæmə]Paraphrase:n.

The

gamma

of

a

portfolio

of

options

on

anunderlying

asset

is

the

rate

of

change

of

theportfolio’s

delta

with

respect

to

the

price

of

theunderlying

asset.Example:If

gamma

is

small,

delta

changes

slowly,

andadjustments

to

keep

a

portfolio

delta

neutral

needto

be

made

only

relatively

infrequently.金融基础词汇Gamma

NeutralPhonetic

symbol:英[ˈgæmə

ˈnju:trəl]；美[ˈɡæməˈnu:trəl]Paraphrase:A

position

in

theunderlying

asset

has

zerogamma

and

cannot

be

used

tochangethegamma

of

a

portfolio.Example:If

gamma

is

small,

delta

changes

slowly,

andadjustments

to

keep

a

portfolio

delta

neutral

needto

be

made

only

relatively

infrequently.金融基础词汇VegaPhonetic

symbol:英['vi:gə];美['vi:gə]Paraphrase:n.

The

vega

of

a

portfolio

of

derivatives,

is

the

rateof

change

of

the

value

of

the

portfolio

withrespect

to

the

volatility

of

the

underlying

asset.Example:If

vega

is

highly

positive

or

highly

negative,

theportfolio’s

value

is

very

sensitive

to

small

changesin

volatility.

If

it

is

close

to

zero,

volatility

changeshave

relatively

little

impact

on

the

value

of

theportfolio..金融基础词汇Value

at

Risk

(VaR)Phonetic

symbol:英['væljuː

æt

rɪsk]；美['vælju

æt

rɪsk]Paraphrase:Value

at

Risk

(VaR)

is

a

measure

of

the

risk

ofinvestments.

It

estimates

how

much

a

set

ofinvestments

might

lose.Example:We

now

allow

the

P/L

or

return

distribution

to

beless

restricted,

but

focus

on

the

tail

of

thatdistribution—the

worst

p%

of es,

and

thisbrings

us

back

to

the

VaR.金融基础词汇Expected

Losses

(EL)Phonetic

symbol:英[ɪkˈspektɪd'lɒsɪz];美[ɪk'spɛktɪd'lɔsɪz]Paraphrase:A

bank

can

expect

to

lose,

o age,

a

certainamount

of

money

over

a

predetermined

period

oftime

when

extending

credits

to

its

customers.Antonym:Unexpected

Losses

(UL)Example:It

is

important

to

recognize

tha is

not

the

levelof

losses

predicted

for

the

following

year

basedon

the

economic

cycle,

but

rather

the

long-runaverage

loss

level

across

a

range

of

typicaleconomic

conditions.金融基础词汇Probability

of

Default

(PD)Phonetic

symbol:英[prɒbə'bɪlɪtɪ

ɒv

dɪ'fɔːlt];美['prɑbə'bɪləti

ʌvdɪ'fɔlt]Paraphrase:The

probability

of

default

(PD),

which

is

theprobability

that

a

borrowerwill

default

before

theend

of

a

predetermined

period

of

time

or

at

anytime

before

the

maturity

of

the

loan.Homoionym:Expected

Default

Frequency

(EDF)Example:PD

is

a

borrower-specific

estimate

that

is

typicallylinked

to

the

borrower’s

risk

rating,

that

is,estimated

independently

of

the

specifics

of

thecredit

facility

such

as

collateral.金融基础词汇Loss

Rate

(LR)Phonetic

symbol:英[ɪkˈspektɪd'lɒsɪz];美[ɪk'spɛktɪd'lɔsɪz]Paraphrase:The

loss

rate

(LR)

that

is,

the

fraction

of

theexposure

amount

that

is

lost

in

the

event

ofdefault,

meaning

the

amount

that

is

not

recoveredafter

the

sale

of

the

collateral.Homoionym:Loss

Given

Default

(LGD)Example:LR

represents

the

ratio

of

actual

losses

incurred

atthe

time

of

default

(including

all

costs

associatedwith

the

collection

and

sale

of

collateral)

toexposure

amount.金融基础词汇Expected

Shortfall

(ES)Phonetic

symbol:英[ɪk'spektɪd

'ʃɔːtfɔːl]

美[ɪk'spɛktɪd'ʃɔrtfɔl]Paraphrase:TheES

is

theaverageof

theworst

100(1-a)%

oflosses.Homoionym:Conditional

VaR;

Tail

Conditional

Expectation;Conditional

Loss;

Expected

Tail

LossExample:The

ES

provides

a

common

consistent

riskmeasure

across

different

positions,

it

takesaccount

of

correlations

in

a

correct

way.金融基础词汇Wrong-way

tradePhonetic

symbol:英[rɒŋ-weɪtreɪd];

美[rɔŋ-we

tred]Paraphrase:Wrong-way

trades

are

positions

where

theexposure

is

positively

correlated

with

theprobability

of

default.Example:A

swap

between

a

bank

and

a

speculator.

If

thebank

loses

money

on

the

swap,

credit

risk

is

notan

issue,

because

the

bank

has

no

credit

exposure.If

the

bank

makes

a

large

profit

on

the

swap,however,

this

must

be

at

the

expense

of

thespeculator.

If

the

loss

to

the

other

party

issufficiently

large,

the

speculator

could

defaultprecisely

because

of

the

swap.

Therefore,

suchtrades

are

inherently

more

dangerous

than

thosewhere

the

counterparty

is

a

hedger.金融基础词汇Liquidity

RiskPhonetic

symbol:英[lɪ'kwɪdɪtɪ

rɪsk];

美[lɪ'kwɪdəti

rɪsk]Paraphrase:The

risk

of

losses

due

to

the

need

to

liquidatepositions

to

meet

funding

requirements.Example:Asset

liquidity

risk,

also

called

market/productliquidity

risk,

is

the

risk

that

a

position

cannoteasily

be

unwound

or

offset

at

short

no