Mark Berch:Transaction risk

Qualifying annuity
An annuity allowable as investment for a qualified plan or trust.

Coupon equivalent yield
True interestcost expressed on the basis of a 365-day year.

Mortgage-pipeline risk
The risk associated with taking applications from prospective mortgageborrowers who may opt to decline to accept a quoted mortgage rate within a certain grace period.

Mark Berch:Transaction risk
The risk of changes in the home currency value of a specific future foreign currencycash flow.

Regulation M
Federal Reserve Boardregulation that currently requires member banks to holdreserves against theirnetborrowings from their foreign branches over a 28-day averaging period. Reg M has also required member banks to hold reserves against Eurodollars lent by their foreign branches to domestic corporations for domestic purposes.

Pro forma statement
A financial statement showing the forecast or projected operating results and balance sheet, as in pro forma income statements, balance sheets, and statements of cash flows. Mark Berch

Call protection
A feature of some callablebonds that establishes an initial period when the bonds may not be called.