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Tenor Of An Agreement

Depending on risk tolerance and financial objectives, some investors may even systematically avoid securities longer than the specified period. For example, an entity that wants to meet its short- and medium-term liquidity needs could buy and sell debt securities for five years or less. In this context, adjustments could be made on the basis of the solvency of the counterparties concerned. For example, an entity could accept a five-year tone for high-rated counterparties, while limiting misjudged counterparties to tenors of three years or less. The term tenor is also used for atypical financial instruments such as derivative contracts. In this context, it is frequently used when the risk-taking of a certain security is described. For example, a long-term contract could be described as relatively risky, as there is still a long time to see its value decrease. Derivatives with shorter tenors would also be considered less risky. In compensation for this perceived risk, buyers of high tenor securities generally demand compensation in the form of lower prices or higher risk premiums. Trend, trend, drift, tenor, current average movement in a certain direction. The trend implies an inclination that sometimes corresponds to a driving force. A general trend towards inflation applies to the general direction, which is maintained by a winding or irregular trajectory.

the long-term trend of the equity market may drift upwards may depend on a trend determined by external forces drifting the population away from the big cities or it may apply to an underlying or obscure trend of meaning or discourse. the drift of his argument is accentuated by a clearly perceptible direction and a continuous and unstable course. The tone of the present time implies a clearly defined, but not necessarily immutable, evolution. A meeting that changed the flow of my life to defining English (note 2 of 2) For example, if a 10-year government bond were issued five years ago, its maturity would be ten years and its tone – the time remaining until the end of the contract – would be five years.