Page 139 - PRIAA Glossary

RECORD DATE
The date established by an issuer of a security for the purpose of determining the holders who are entitled to receive a dividend or distribution.
RECOVERY
1) Attempt to recover partial or full payment of investments in non-performing loans or bad debts. Also called “bad debt recovery”. 2) A period of rise in securities prices after a period of decline. Also called “rally”.
RECOVERY RATE
The amount of a creditor’s claim, expressed as a percentage, that is actually recovered through liquidation of the assets of a company following bankruptcy.
RECOVERY SWAP
A credit derivative where the payoff is based on the difference between a pre-set fixed recovery rate and the recovery rate which is observed at the time of the credit event.
REDEMPTION
The repurchase of a security (such as a bond, preferred stock or mutual fund) by the issuing company from the holder of that security, at par or at a premium price, at maturity or before if it is cancelled by the company.
REDEMPTION DATE
The date on which a security (bond or loan stock) matures and the issuer redeems the security by paying the investor the principal and any interests.
REDEMPTION PRICE
The price at which a security (bond or preferred stock) can be redeemed by the issuer.
REFERENCE ENTITY
The underlying corporate or sovereign in respect of which credit protection is being offered by the seller of protection to the buyer of protection under a credit derivative.
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