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Definition of Make whole - Finance dictionary
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Make whole (See Chapter 22 of the Vernimmen)
Designates a clause (provision) in a fixed-rate funding arrangement whereby a borrower/issuer can repay ahead of the initially scheduled Maturity date all or part of the loan/bond, but must pay a certain amount to compensate the opportunity loss to be suffered by the lender/investor (loss from having to reinvest the funds received at a lower Interest rate than those of the fixed-rate loan/bond).
Make whole (See Chapter 22 of the Vernimmen)
Designates a clause (provision) in a fixed-rate funding arrangement whereby a borrower/issuer can repay ahead of the initially scheduled Maturity date all or part of the loan/bond, but must pay a certain amount to compensate the opportunity loss to be suffered by the lender/investor (loss from having to reinvest the funds received at a lower Interest rate than those of the fixed-rate loan/bond).
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Definitions of terms begining
with the same letter as "Make whole"
:
Make whole (See Chapter 22 of the Vernimmen)
Designates a clause (provision) in a fixed-rate funding arrangement whereby a borrower/issuer can repay ahead of the initially scheduled Maturity date all or part of the loan/bond, but must pay a certain amount to compensate the opportunity loss to be suffered by the lender/investor (loss from having to reinvest the funds received at a lower Interest rate than those of the fixed-rate loan/bond).
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