Page 134 - PRIAA Glossary

PROCESSED NATURAL GAS
Natural gas wherein the water and other impurities have been removed.
PRODUCT CARRIER
General term that applies to any tanker used to transport refined oil products, such as gasoline, jet fuel or heating oil.
PRODUCT CASH FLOWS (PCF)
Typically includes fees, coupons, interest and other cash flows stemming from collateralised derivatives. In some cases, PCFs are netted with the margin call.
PROJECTED BENEFIT OBLIGATION (PBO)
An estimate of the present value of an employee’s pension, assuming continuous employment. In calculating this, projected increases in salary should also be taken into account.
PROPANE (C3)
An natural gas liquid (NGL) hydrocarbon component of NGLs primarily used for heating. It is transported in truck, rail or pipeline.
PROPRIETARY (PROP) TRADING
The strategy used by investment banks and other financial institutions to trade on the firm’s own account rather than using customer capital.
PROTECTION BUYER
A party to a credit default swap that pays a premium to the protection seller, who in turn agrees to compensate the (protection) buyer in the event that the reference entity suffers a credit event.
PROTECTION SELLER
A party to a credit default swap that assumes the credit risk of a reference entity in return for receipt of premium.
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