| No. | Item | Definition |
|---|---|---|
| 1. | accrual | recognition before cash payment |
| 2. | advance rate | percent of collateral lent |
| 3. | amortization | gradual repayment or write-off |
| 4. | arrears | overdue payments |
| 5. | asset | resource with economic value |
| 6. | availability | amount still drawable |
| 7. | balance sheet | statement of assets and liabilities |
| 8. | bankruptcy | legal insolvency process |
| 9. | benchmark | reference rate or standard |
| 10. | borrower | party receiving a loan |
| 11. | borrowing base | collateral-based lending limit |
| 12. | breach | violation of a covenant |
| 13. | bullet | principal repaid at maturity |
| 14. | capital | funds available to absorb losses |
| 15. | cash flow | money moving in and out |
| 16. | collateral | assets pledged for a loan |
| 17. | concentration | risk from excessive exposure |
| 18. | counterparty | other party in a contract |
| 19. | coupon | bond’s stated interest payment |
| 20. | covenant | contractual promise in debt agreements |
| 21. | creditworthiness | ability to repay debt |
| 22. | debt | money owed |
| 23. | default | failure to repay obligations |
| 24. | delinquency | late payment status |
| 25. | downgrade | lowering of a credit rating |
| 26. | drawdown | borrowing under a facility |
| 27. | duration | sensitivity to rate changes |
| 28. | enforcement | legal exercise of creditor rights |
| 29. | equity | owners’ residual interest |
| 30. | exposure | amount at risk |
| 31. | face value | amount payable at maturity |
| 32. | facility | agreed borrowing arrangement |
| 33. | forbearance | temporary leniency by lenders |
| 34. | forecast | estimate of future results |
| 35. | foreclosure | seizing pledged property |
| 36. | free cash flow | cash after core spending |
| 37. | going concern | business expected to continue |
| 38. | governance | system of oversight and control |
| 39. | grace period | extra time before penalty |
| 40. | guarantee | promise to repay another’s debt |
| 41. | guarantor | party providing a guarantee |
| 42. | haircut | reduction in claimed value |
| 43. | hedge | position reducing financial risk |
| 44. | impairment | reduction in asset value |
| 45. | income statement | report of profit and loss |
| 46. | indenture | bond contract terms |
| 47. | insolvency | inability to pay debts |
| 48. | installment | scheduled partial payment |
| 49. | interest | cost of borrowing money |
| 50. | inventory | goods held for sale |
| 51. | issuer | entity issuing debt securities |
| 52. | lender | party providing a loan |
| 53. | leverage | use of borrowed money |
| 54. | liability | financial obligation owed |
| 55. | liquidation | selling assets to repay debts |
| 56. | liquidity | ability to meet near-term payments |
| 57. | loss given default | loss after recoveries |
| 58. | margin | added amount over benchmark |
| 59. | market value | current price in the market |
| 60. | maturity | date principal becomes due |
| 61. | nonaccrual | interest no longer recognized |
| 62. | obligor | party owing payment |
| 63. | origination | creation of a new loan |
| 64. | payables | amounts owed to suppliers |
| 65. | prepayment | early repayment of debt |
| 66. | principal | original amount borrowed |
| 67. | priority | order of repayment claims |
| 68. | probability of default | chance a borrower defaults |
| 69. | provision | amount set aside for losses |
| 70. | rating | credit quality assessment |
| 71. | receivables | amounts owed by customers |
| 72. | recession | broad economic contraction |
| 73. | recovery | amount regained after default |
| 74. | refinancing | replacing debt with new debt |
| 75. | restructuring | changing debt terms |
| 76. | secured | backed by collateral |
| 77. | senior | having higher repayment priority |
| 78. | solvency | ability to meet long-term debts |
| 79. | spread | difference between two rates |
| 80. | subordinated | lower in repayment priority |
| 81. | surveillance | ongoing credit monitoring |
| 82. | syndicate | group of participating lenders |
| 83. | syndication | loan shared by multiple lenders |
| 84. | tenor | length of time to maturity |
| 85. | term loan | loan with set maturity |
| 86. | tranche | distinct slice of debt |
| 87. | trend | general direction over time |
| 88. | underwriting | evaluating and pricing credit risk |
| 89. | unsecured | not backed by collateral |
| 90. | upgrade | raising of a credit rating |
| 91. | utilization | used portion of available credit |
| 92. | variance | difference from expected result |
| 93. | volatility | degree of fluctuation |
| 94. | waiver | formal forgiveness of a breach |
| 95. | watchlist | list of higher-risk credits |
| 96. | working capital | current assets minus liabilities |
| 97. | workout | negotiated resolution of distress |
| 98. | write-down | reduction in carrying value |
| 99. | write-off | removal as uncollectible |
| 100. | yield | return on an investment |
