Banking/Investing/Financial terms 6

📚 Key vocabulary
hedge fund — a pooled investment fund using advanced strategies, typically available only to institutional or accredited investors
underwriting — the process of evaluating and assuming financial risk for a fee, used in loans, insurance, and securities
amortization schedule — a table showing periodic loan payments broken down by principal and interest over the life of the loan
letter of credit — a bank document guaranteeing a buyer's payment to a seller, used frequently in international trade
default — the failure to meet the legal obligations of a loan, such as missing scheduled payments
fiduciary — a person or institution with a legal obligation to act in another party's best financial interest
money market — a financial market for short-term, low-risk debt instruments and highly liquid securities
yield — the earnings generated on an investment, expressed as a percentage of its cost or current market value
repo rate — the interest rate at which a central bank lends money to commercial banks on a short-term basis
non-performing loan (NPL) — a loan on which the borrower has not made scheduled payments for a specified period, usually 90 days