Page 103 - PRIAA Glossary

LIQUIDITY RISK
The risk that a firm unwinding a portfolio of illiquid instruments may need to sell at less than fair value. An illiquid market may be defined as one containing wide bid- ask spreads, a lack in transparency, and large movements in price after a sizeable deal has been traded.
LIQUIDITY SWAP
See ‘collateral swap’.
LISTED LOOK-A-LIKE
Denotes the settlement price used to value an over-the- counter (OTC) equity derivative trade, which mirrors the official settlement price published for a listed derivative contract for that underlying asset traded on the related exchange quoted in the trade confirmation.
LNG CARRIER
A vessel designed to carry liquefied natural gas (LNG). LNG is natural gas that has turned into a liquid after being cooled to 163 degrees centigrade. This process reduces its volume to 1/600 of its volume in gaseous form.
LOAD FACTOR
The ratio between average and peak usage for electricity or gas customers.
LOAD SHAPE
A graphical representation of electrical energy requirements of a region over a period of time. The plot of electrical
energy demand against time is called load shape due to its distinctive shape. It provides useful information for demand- side planning and the management of electricity.
LOAN ONLY CREDIT DEFAULT SWAP (LCDS)
A credit default swap where the underlying reference credit is a syndicated secured loan rather than any other asset class (for example bond, unsecured loan or asset backed security).
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