Super Finance Glossary

Over 10,000 financial glossary terms...

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Browsing by the letter "L"

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Lehman Brothers California Municipal Bond Index
Definition: A benchmark index that includes investment-grade, tax-exempt, and fixed-rate bonds issued in California. All securities have long-term maturities (greater than two years) and are selected from issues larger than $50 million.
Lehman Brothers Corporate Bond Index
Definition: A benchmark index that includes all publicly issued, fixed-rate, nonconvertible, dollar-denominated, SEC-registered, investment-grade corporate debt.
Lehman Brothers Government Bond Index
Definition: A benchmark index made up of the Treasury Bond Index and the Agency Bond Index as well as the 1-3 Year Government Index and the 20+ Year Treasury Index.
Lehman Brothers Government/Corporate Bond Index
Definition: A benchmark index made up of the Lehman Brothers® Government and Corporate Bond indexes, including U.S. government Treasury and agency securities as well as corporate and Yankee bonds.
Lehman Brothers Mortgage-Backed Securities Index
Definition: A benchmark index that includes 15- and 30-year fixed-rate securities backed by mortgage pools of the Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), and Federal National Mortgage Association (FNMA).
Lehman Brothers Municipal Bond Index
Definition: A benchmark index that includes investment-grade, tax-exempt, and fixed-rate bonds with long-term maturities (greater than two years) selected from issues larger than $50 million.
Lehman Brothers New York Municipal Bond Index
Definition: A benchmark index that includes investment-grade, tax-exempt, and fixed-rate bonds issued in the state of New York. All securities have long-term maturities (greater than two years) and are selected from issues larger than $50 million.
Lemon
Definition: An investment with poor results.
Lemons Problem
Definition: Named after 2001 Nobel Laureate George Akerlof's 1970 paper "The Market for Lemons". His original example had to do with used cars. Why does the seller want to get rid of the car? It might be a lemon. The buyer and seller have asymmetric information. Hence, the buyer will demand a deep discount on the car because of the possibility it is a lemon.
Lend
Definition: To provide money temporarily on the condition that it or its equivalent will be returned, often with an interest fee.
Lendable Funds
Definition: The pool of funds available to borrows; typically categorized by currency and maturity.
Lender
Definition: Businesses that provide loans to others.
Lender Liability Lawsuits
Definition: Legal action of debtor against creditors that alleges unfair enforcement of loan covenants or violation of implied terms of a loan agreement.
Lender Of Last Resort
Definition: Traditionally the Federal Reserve Bank in the US, which assists banks that face large withdrawals of funds and in so doing stabilizes the banking system.
Lending Agreement
Definition: A contract regarding funds transferred between a lender and a borrower.
Lending At A Premium
Definition: A loan from one broker to another of securities to cover a customer's short position, with a borrowing fee included. A fee is unusual since securities are normally lent freely between brokers.
Lending At A Rate
Definition: Interest paid to a customer on the credit balance received from a short sale.
Lending Securities
Definition: Securities borrowed from a broker's inventory, from another customer's margin account, or from another broker, when a customer is required to deliver on a short sale.
Leptokurtosis
Definition: The condition of a probability density curve to have fatter tails and a higher peak at the mean than the normal distribution.
Less Than Container Load
Definition: Shipments of less than container load size (<$50,000).
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