Page 72 - PRIAA Glossary

FIRST LOSS BASKET
A credit derivative transaction based on a basket of reference entities. Following a credit event in respect of one of the reference entities in the basket, a portion of the transaction terminates and settles as if it were a single name credit default swap.
FIRST NOTICE DAY
The first day that holders of long positions may be informed that they have been assigned a delivery of a futures contract. First notice day may vary with each commodity and exchange.
FIRST PURCHASER (NATURAL GAS)
The person to whom the first title is transferred to from the wellhead. The first purchaser is typically responsible for royalty payments to the producer.
FIRST TO DEFAULT BASKET
A credit derivative transaction where the payoff is based on the first asset to default in a basket of underlying reference entities. Once a default occurs, the transaction terminates and is settled.
FIXED NOTE
A debt security that has a fixed interest payment, or coupon, as opposed to a floating interest payment.
FIXED RATE
A contractually determined interest rate (or “coupon”) that is fixed at the outset and does not vary over the life of the instrument.
FLARED NATURAL GAS
Gas in need of being disposed that is burned in flares at processing plants or production sites.
FLIP FLOP
An interest rate swap that allows the buyer to switch between receiving a fixed rate and a floating rate of interest on defined dates during the life of the transaction.
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