Tuesday, November 13, 2007

Under

Short for underlying. Often bonds sold with insurance also are given a rating as if there were no insurance. This is called the underlying rating.

E.g. The bond is rated AAA MBIA with a AA under.

Translation: The bond is rated AAA because of MBIA insurance and would have been rated AA without the insurance.

2 comments:

Unknown said...

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Unknown said...

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