Device that places the ownership of real property with one or more trustees for security until the loan is paid by the debtor. It is used in place of a conventional mortgage contract in some states. The deed of trust stipulates that in the event of default by the debtor the trustee would liquidate t...

Every ARM is tied to an interest rate index. An index has three relevant features:availibility, level, volatility. All the common ARM indexes are readily available from a published source, with the exception of one called the Cost of Savings Index, or COSI. In principle, a lower index is better for ...

Insurance in which most of the premium (generally 80 to 90%) is invested in traditional fixed income securities. The remainder of the premium is invested in call option contracts tied to a stipulated stock index. In those instances where there is an increase in the market, exercising of the option c...

Single limit insurance program remaining in force for several years as compared with traditional insurance programs where there is a series of annual limits. The LUMP insurance program is most effective in those instances where the statistical analysis shows low-frequency, short-tail (length of time...