Page 81 - PRIAA Glossary

elapses and the failure or breach still continues, an event of default will have occurred. In credit derivatives, the grace period is the period after which a potential failure to pay becomes an actual failure to pay and, hence, a credit event.
GRACE PERIOD EXTENSION APPLICABLE
When a grace period extension is applicable, protection is deemed to be valid under a credit derivative contract if a potential failure to pay occurs before the scheduled termination date, but the actual failure to pay occurs afterwards (i.e., after the grace period has expired).
GREEKS
A term used to describe a group of common sensitivity measurements within finance, particularly with respect to options. These sensitivity measurements are calculated based on option price sensitivity to various underlying factors, such as asset price, implied volatility and time. Popular Greeks include Delta, Gamma, Theta, Rho and Vega.
GRID
A power or gas transmission system.
GROSS
A derivative or asset position expressed without netting of bought and sold trades.
GROSS OF FEE PERFORMANCE
The performance of an investment portfolio before the investment management, trading, administrative fees and carried interests are deducted.
GUARANTOR
A person or entity that assumes responsibility for another’s debt or performance under a contract, if the other person/ party fails to pay or perform. In case of a default, the guarantor must compensate the lender or client and usually acquires an immediate right of action against the principal for payments made under the guarantee.
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