1586 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

Showing 2 terms

Direct assignment

Fundamental analysis

Also called: Portfolio assignment

The outright sale of a loan portfolio to a buyer — often a bank meeting its priority sector obligations — with the seller retaining a prescribed minimum share of every loan and continuing to service them.

In plain terms

Where the transfer qualifies, the loans leave the balance sheet and the future spread is recognised now. The borrower never notices: the same branch, the same collections, a different owner of the interest.

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Gain on assignment

Accounting

Also called: Gain on derecognition of assigned loans

The present value of the excess interest spread on a sold loan pool, recognised in income at the moment a transfer qualifies to come off the balance sheet.

In plain terms

Future interest brought into this quarter. It does not repeat unless another pool is sold, and it rests on disclosed assumptions about prepayment and default that reduce the spread actually collected.

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