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Call Feature (or Called) - The issuer's right to redeem outstanding bonds before their scheduled maturity. The dates when an issuer may call bonds are defined in the official statement of every issue that has a call provision in its indenture.

Callable Bond - A bond that may be redeemed by the issuer on specified dates prior to maturity.

CAMELS - A measure used by banking regulators to assess a depository financial institution's strength (Capital, Asset Quality, Management, Earnings, Liquidity, and Sensitivity to Market Risk)

Cap - A provision in a variable-rate loan or line of credit that limits how much the interest rate or payments may increase during the life of the loan or line of credit.

Capital Expenditure - The cost of an improvement made to extend the useful life of a property or to add to its value.

Capital Gains Distribution - A mutual fund's distribution to shareholders of the profits derived from the sale of stocks and bonds.

Capitalization Rate - A method used to estimate the value of a property based on the rate of return on investment.

Cash Advance - Cash drawn from the available credit on a credit card account.

Cash Flow Forecasting - The forecasting of known future cash receipts and disbursements, and calculating cash balances for each future date to identify shortfalls and cash surpluses.

Cash Reserve - A requirement by lenders that buyers have sufficient cash remaining after closing for reserves to meet financial contingencies.

Central Bank - A national entity that establishes conditions and restrictions for that country's financial policy. The Federal Reserve Bank is the central bank of the United States.

Certificate of Deposit (CD) - A written document issued by a bank or other financial institution that is evidence of deposit with the issuer's promise to return the deposit plus earnings at a specified rate of interest.

Change - The change in the price of a security from the previous day's closing price. For example, -1 1/8 means the security has fallen $1.12.

Closed-End Fund - A fund which sells a fixed number of shares to investors. Those shares sell on an exchange and vary in price, depending on demand for the fund. A fund's shares, for example, can trade below their net asset value or above their net asset value, depending on investors' demand for the shares. Country funds that represent shares in a specific country or region, such as Italy or France, are often closed-end funds.

Closing - The specific time and place at which the contractual documents associated with the loan are executed.

Closing Costs - Money paid by borrowers and sellers to effect the closing of a mortgage loan, including attorney's fees, fees for preparing and filing the mortgage, taxes, title search and insurance. Also called settlement costs.

Collateral - Any property pledged as security for a debt.

Collateralized Mortgage Obligation - A mortgage-based derivative security which may be highly volatile in a changing interest rate environment.

Commitment (Loan) - An agreement, often in writing, made by a lender to a borrower to make a loan, usually at a stated interest rate within a given period of time for a given purpose, subject to the compliance of the borrower to stated conditions.

Commitment Letter - A formal offer by a lender stating the terms under which it agrees to loan money to a borrower.

Commodity - Food, a metal or another physical substance which investors buy or sell, usually via futures contracts.

Commodity Swap - A transaction in which either a fixed or a floating price are swapped for the underlying commodity, or two different commodities are swapped.

Co-Mortgager - A second borrower who is liable on a mortgage loan with a mortgagor. The co-mortgagor's income, assets and debts are combined with the mortgagor's for underwriting and ratio analysis purposes.

Competitive Risk - The risk that the demand for a company's goods and services will decline due to the actions of competitors.

Concession - A discount or other inducement given by a landlord or seller to a prospective tenant or buyer to persuade them to sign a lease or purchase property.

Consumer Price Index (The CPI) - Measures the prices of consumer goods and services and is a measure of the pace of U.S. inflation. The U.S. Department of Labor publishes the CPI every month.

Contingency - A condition that must be met before a contract is legally binding.

Contingent Beneficiary - The person(s) designated to receive any benefits due in the event the primary beneficiary dies prior to the death of the annuitant. If no contingent beneficiary is designated, and if both the annuitant and the primary beneficiary are deceased, the payments will be made to the estate of the annuitant.

Convertible ARM - An adjustable-rate mortgage loan that can be converted to a fixed-rate mortgage loan under specified conditions.

Convertible Debenture - A corporate security (preferred shares or bonds) that is exchangeable for a set number of another security at a pre-stated price.

Convertibility - The ability of a currency to be exchanged for another.

Convexity - The rate of change in a position price for a given change in yield.

Convexity Risk - The risk of adverse changes in the price of a position due to changes in the yield.

Correlation - A measure of the degree to which returns on two risky assets move in tandem. A positive correlation means the returns move together. A negative correlation means they vary inversely.

Correlation Risk - The risk that the actual correlation between two risk assets is not equal to the estimated or expected correlation.

Coupon Rate - The annual rate of interest payable on a coupon security expressed as a percentage of the principal amount.

Covenant - A clause in a contract that obligates or restricts the parties and which, if violated, can give the non-violating party cause to bring legal action.

Cross Border - A transaction in which the sending and receiving banks involved in the transaction are located in two different countries.

Cross-Purchase Plan - An agreement which provides that, upon a business owner's death, surviving owners will purchase the deceased's interest, often with funds from insurance.

Currency Swap - An exchange of equal initial principal amounts of two currencies at the spot exchange rate. Over the term of the agreement, the counter parties exchange fixed or floating rate interest payments in their swapped currencies. At maturity, the principal amount is reswapped at a predetermined exchange rate so that the parties end up with their original currencies.

Current Exposure - The current replacement cost of financial instrument transactions - that is, their market value.

Current Yield - If a security has a dividend, the yield is the price of a stock dividend. A $10 stock that pays a 50 cent dividend for the year has a 5% yield.

CUSIP Number (Committee on Uniform Securities Identification Procedures) - A nine-digit identification number assigned to each maturity of an issue. The CUSIP numbers are intended to help facilitate the identification and clearance of municipal securities. CUSIP numbers should appear on confirmations and monthly quarterly statements from the customer's financial institution.

Cyclical Stock - The stock of a company whose fortunes are closely tied to the cyclical ups and downs of the economy. For example, General Motors is a cyclical stock since its business of selling autos is highly dependent on a robust economy with its attendant high levels of employment, rising personal incomes, etc.

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