Related Words

Participation Financing: Where a lender becomes a partner in a development.

Participation Loan: A large loan made by a group of lenders, that enables a borrower to obtain financing above the legal lending limit of an individual lender.

Participation Mortgage: A mortgage loan wherein the lender has a partial equity interest in the property or receives a portion of the income from the property.

Permanent Financing: Long-term financing using either debt or equity.

Participation Certificates (PC): Used in the context of general equities. Investments representing an interest in a pool of funds or in other instruments, such as foreign securities, that allow participation in the rise or . . . View Full Definition

Participation Certificates: Certificates issued by Freddie Mac backed by pools of mortgages.

Mezzanine Financing: The stage of financing that follows venture capital financing.

Multioption Financing Facility: A syndicated confirmed credit line with attached options.

Net Financing Cost: Also called the cost of carry or, simply, carry, the difference between the cost of financing the purchase of an asset and the asset's cash yield. Positive carry means that the yield earned . . . View Full Definition

Off-Balance-Sheet Financing: Financing that is not shown as a liability on a company's balance sheet.