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Leveraged Buyout
A leveraged buyout is a purchase financed mostly with debt on the target’s cash flows — private equity’s standard carry trade on coverage.
Notional Value
Notional value is the face amount a derivative references — the exposure scale, not the cash outlay or the market value.
Put-Call Parity
Put-call parity is the no-arbitrage link C − P = F − K (discounted) — a European call and put with the same K and T are one instrument plus cash.
Animal Spirits
Animal spirits is Keynes’s name for the non-model confidence that makes people invest or refuse to — the residual when rates and cash flows are not enough to explain the tape.
TINA
TINA — There Is No Alternative — was the 2010s slogan that zero rates left no choice but equities (or credit), compressing risk premia because cash paid nothing.
Window Dressing
Window dressing is quarter- or year-end portfolio cosmetics: dump the losers, buy the winners or the cash, so the snapshot holdings look like the brochure.
Asset
An asset is a present economic resource controlled by an entity from which future cash or service is expected — the left-hand side of the balance sheet.
Capital Expenditure
Capital expenditure is cash spent to buy or extend long-lived assets — the investing outflow that depreciation later shadows.
Cash Flow Statement
The cash-flow statement splits period cash into operating, investing, and financing — the bridge from accrual earnings to the bank account.
Depreciation
Depreciation is the allocation of a tangible asset’s cost over its useful life — a non-cash expense that still points at replacement capex.
Dividend
A dividend is a cash (or stock) distribution of residual earnings to shareholders, declared by the board and not a contractual coupon.
Enterprise Value
Enterprise value is the market value of operating assets — equity plus net debt and other non-equity claims, minus non-operating cash.
Free Cash Flow
Free cash flow is cash from operations minus the capex needed to keep and grow the business — cash that could leave the firm.
Income Statement
The income statement is the period’s revenues minus expenses — accrual earnings, not cash.
Market Bubble
A market bubble is a price path driven more by narrative, leverage, and new buyers than by discounted cash flow — obvious after, argued during.
Quick Ratio
The quick ratio is cash, marketable securities, and receivables over current liabilities — current ratio without inventory.
Share Buyback
A share buyback is the firm purchasing its own stock, shrinking share count and distributing cash without calling it a dividend.
Value Stock
A value stock screens cheap on book, earnings, or cash flow — a low multiple that can be a bargain or a melting ice cube.
Working Capital
Working capital is current operating assets minus current operating liabilities — the cash tied in the operating cycle.
COVID Crash 2020
The February–March 2020 COVID crash was a dash-for-cash that hit even Treasuries, ended by an unprecedented joint monetary-fiscal backstop — a health shock that became a market-function crisis.
Madoff 2008
Bernie Madoff’s 2008 confession revealed a decades-long Ponzi whose redemption run arrived when the GFC made people ask for cash — fraud that needed a crash to be discovered, not a crash caused by the fraud.
CDS Basis Trade
CDS Basis Trade — Arbitrage between cash bonds and CDS contracts revealing funding and counterparty frictions.
Macaulay Duration
Macaulay duration is the present-value-weighted average time to receive a bond’s cash flows — duration in years, before the modified-duration hedge ratio.
MBS Prepayment Speed
MBS Prepayment Speed — Refinancing and turnover driven cash-flow uncertainty in agency mortgages.
Yield to Maturity
Yield to maturity is the constant discount rate that sets the bond’s dirty price equal to its remaining cash flows if held to maturity and coupons are reinvested at that same rate.
Zero-Coupon Bond
A zero-coupon bond pays no coupon and one cash flow at maturity — duration equals maturity, and the whole return is pull-to-par plus yield change.
Cash Market Liquidity Premium
Cash Market Liquidity Premium — Extra yield demanded for holding less liquid cash instruments.
Margin
Margin is collateral posted against a leveraged position — the cash or securities that keep the broker or CCP whole.
Money Market Fund Assets
Money market fund assets track the amount of cash parked in short-term low-risk vehicles, providing insight into liquidity preference, deposit substitution, and defensive positioning.
Reverse Repo Facility Usage
Reverse Repo Facility usage shows how much cash is being parked at the Federal Reserve overnight and helps track reserve distribution, collateral demand, and system liquidity conditions.
Treasury General Account
Treasury General Account tracks the U.S. Treasury’s cash balance at the Federal Reserve and influences system liquidity by absorbing or releasing reserves.
Asset Allocation
Asset allocation is the split of a portfolio across stocks, bonds, cash, and alternatives — the decision that usually dwarfs manager selection.
Dollar-Cost Averaging
Dollar-cost averaging is investing a fixed cash amount on a schedule — you buy more shares when price is down, fewer when up.
Accrual Anomaly
Short high-accrual (low cash-earnings-quality) firms and long low-accrual firms — Sloan’s earnings-quality sort.
Asset Class Trend-Following
Hold each broad asset class only when it is in an uptrend (typically above a long moving average); otherwise sit in cash or bills.
Dual Momentum
Combine relative momentum (which asset) with absolute momentum (whether to be in cash) — Antonacci’s two-filter TAA.
Accrual Anomaly
Short high-accrual (low cash-earnings-quality) firms and long low-accrual firms — Sloan’s earnings-quality sort.
Animal Spirits
Animal spirits is Keynes’s name for the non-model confidence that makes people invest or refuse to — the residual when rates and cash flows are not enough to explain the tape.
Asset
An asset is a present economic resource controlled by an entity from which future cash or service is expected — the left-hand side of the balance sheet.
Asset Allocation
Asset allocation is the split of a portfolio across stocks, bonds, cash, and alternatives — the decision that usually dwarfs manager selection.
Asset Class Trend-Following
Hold each broad asset class only when it is in an uptrend (typically above a long moving average); otherwise sit in cash or bills.
Capital Expenditure
Capital expenditure is cash spent to buy or extend long-lived assets — the investing outflow that depreciation later shadows.
Cash Flow Statement
The cash-flow statement splits period cash into operating, investing, and financing — the bridge from accrual earnings to the bank account.
Cash Market Liquidity Premium
Cash Market Liquidity Premium — Extra yield demanded for holding less liquid cash instruments.
CDS Basis Trade
CDS Basis Trade — Arbitrage between cash bonds and CDS contracts revealing funding and counterparty frictions.
COVID Crash 2020
The February–March 2020 COVID crash was a dash-for-cash that hit even Treasuries, ended by an unprecedented joint monetary-fiscal backstop — a health shock that became a market-function crisis.
Depreciation
Depreciation is the allocation of a tangible asset’s cost over its useful life — a non-cash expense that still points at replacement capex.
Dividend
A dividend is a cash (or stock) distribution of residual earnings to shareholders, declared by the board and not a contractual coupon.
Dollar-Cost Averaging
Dollar-cost averaging is investing a fixed cash amount on a schedule — you buy more shares when price is down, fewer when up.
Dual Momentum
Combine relative momentum (which asset) with absolute momentum (whether to be in cash) — Antonacci’s two-filter TAA.
Enterprise Value
Enterprise value is the market value of operating assets — equity plus net debt and other non-equity claims, minus non-operating cash.
Free Cash Flow
Free cash flow is cash from operations minus the capex needed to keep and grow the business — cash that could leave the firm.
Income Statement
The income statement is the period’s revenues minus expenses — accrual earnings, not cash.
Leveraged Buyout
A leveraged buyout is a purchase financed mostly with debt on the target’s cash flows — private equity’s standard carry trade on coverage.
Macaulay Duration
Macaulay duration is the present-value-weighted average time to receive a bond’s cash flows — duration in years, before the modified-duration hedge ratio.
Madoff 2008
Bernie Madoff’s 2008 confession revealed a decades-long Ponzi whose redemption run arrived when the GFC made people ask for cash — fraud that needed a crash to be discovered, not a crash caused by the fraud.
Margin
Margin is collateral posted against a leveraged position — the cash or securities that keep the broker or CCP whole.
Market Bubble
A market bubble is a price path driven more by narrative, leverage, and new buyers than by discounted cash flow — obvious after, argued during.
MBS Prepayment Speed
MBS Prepayment Speed — Refinancing and turnover driven cash-flow uncertainty in agency mortgages.
Money Market Fund Assets
Money market fund assets track the amount of cash parked in short-term low-risk vehicles, providing insight into liquidity preference, deposit substitution, and defensive positioning.