Page 114 - PRIAA Glossary

MODIFIED FOLLOWING BUSINESS DAY CONVENTION (MODIFIED FOLLOWING)
A type of business day convention where payment days
that fall on a bad business day roll forward to the next good business day unless that day falls in the next calendar month, in which case the payment day will roll backwards to the preceding good business day.
MONETARY AUTHORITY OF SINGAPORE (MAS)
The central bank of Singapore. MAS is Singapore’s supervisor and regulator of the financial service sector.
MONEY MARKET
A segment of the fixed income market that is characterised
by short-term, highly liquid, low-risk securities. The money market often has lower returns than other riskier investments and is also known as cash equivalents. Money market funds make investments in money market securities such as government bills/notes, commercial paper, floating rate notes, CDs, repurchase agreements and discount instruments.
MONEY-WEIGHTED RATE OF RETURN (MWRR)
The interest rate that will set the present value of the investment portfolio equal to the present value of the cash flows. MWRR is equivalent to the internal rate of return.
MONOLINE INSURERS
Specialist insurers who provide financial guarantees over asset-backed, mortgage-backed and other structured securities.
MONTE CARLO METHOD
The process of using a non-parametric technique to solve a problem. For example, spreading grains of rice over an irregular shape contained within a unit square and then calculating the proportion of grains in the shape relative to the unit square to approximate the area of the shape.
112