Page 130 - PRIAA Glossary
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PLATTS
A provider of energy, shipping and metals data specialising in news, market alerts, price reports, newsletter, market reports, maps and geospatials. It is the foremost source
of benchmark price reports/assessments in the physical energy markets.
POOL FACTORS
The current outstanding principal balance of a particular security divided by the original issued balance, expressed as a percentage or decimal.
PORTABILITY
The ability to transfer cleared positions from one clearing member to another.
PORTFOLIO
One or more related accounts which hold securities for an entity. The portfolio is the set of accounts which represent the full financial picture of that entity with a given investment professional.
PORTFOLIO COMPRESSION
A process of reducing the size of a derivative portfolio, in terms of the total number of trades and the outstanding notional amount, whilst maintaining the overall risk characteristics of the portfolio. Also sometimes referred to as “tear-ups”. Providers of trade compression services include TriOptima (TriReduce) and Markit/Creditex.
PORTFOLIO IMMUNISATION
A “duration matching” strategy that attempts to manage
the portfolio so that changes in interest rates will affect both price and re-investment at the same rate, keeping the portfolio’s rate of return constant. This strategy provides protection to the expected yield of a portfolio by acquiring securities whose duration equals the length of the investor’s planned holding.
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