The Business

Net operating income divided by property value — real estate's earnings yield.

Earnings before interest, taxes, depreciation and amortization.

Property revenue minus operating expenses; the building's 'EBITDA'.

The two-column ledger showing a bank's assets and liabilities.

Current assets minus current liabilities — cash tied up in operations.

Defer capital-gains tax by reinvesting real-estate proceeds in like-kind property.

The layered claims on a property: senior debt, mezz, pref equity, common equity.

A charitable account: deduct now, grant to charities over time.

A structural advantage that protects long-run returns on capital.

Banks hold only a fraction of deposits as reserves and lend out the rest.

Cash left after reinvesting in the business — what owners can actually take.

An agreement to exchange currencies at a fixed rate on a future date.

Fee paid by the merchant's bank to the cardholder's bank on every card transaction.

A bank's irrevocable promise to pay on a beneficiary's compliant presentation.

Umbrella contract under which individual statements of work operate.

A bank line you can draw, repay and redraw up to a limit.

GP's share of fund profits, taxed at capital-gains rates if held >3 years.

The Fed's standing facility lending against collateral at the discount rate.

Intrinsic value = sum of future free cash flows discounted to today.

The ordered sequence in which fund proceeds are split between LPs and GP.

The formula a university or foundation uses to convert investment returns into annual spending.

USD deposits held in banks outside the United States.

Tests the borrower must satisfy or trigger a default.

One party agrees to make the other whole for specified losses.

Acquisition financed mostly with debt secured by the target's own cash flows.

Junior, high-coupon debt that often carries equity warrants.

A grantmaking 501(c)(3) controlled by a single donor or family.

Qualified Small Business Stock — up to $10M (or 10× basis) of gain federally tax-free.

Real Estate Investment Trust — pass-through entity for owning real estate at scale.

Institutional, covenant-lite leveraged loan sold to CLOs and credit funds.

Bank's loss-absorbing capital — equity plus qualifying AT1 instruments.

The bank instruments that bridge the trust gap between cross-border buyer and seller.

Weighted average cost of capital — the blended hurdle a firm must earn.

Collateralized debt obligation — bond backed by a pool of loans/bonds, tranched by risk.

Insurance against a borrower defaulting, traded as a derivative.

A Federal Acquisition Regulation clause incorporated into US government contracts.

Grantor-retained annuity trust — transfer appreciation tax-free.

HQLA ≥ 30-day net cash outflows under stress — must be ≥ 100%.

Replacing one party to a contract with another, extinguishing the original.

Qualified subchapter S trust — allows a trust to own S-corp stock without breaking the S election.

The arm's-length prices at which related-party affiliates trade with each other.

USD-denominated bond issued in the US by a foreign issuer.

Replacing a CMBS loan's collateral with USTs that perfectly replicate the debt-service schedule.

Legacy structure that routed royalties through a Dutch BV to a Caribbean tax haven.

Credit Support Annex — the collateral schedule that governs OTC derivative exposures.

Global minimum 15% effective tax rate on multinational profits.

Reusing collateral received in a repo as collateral for one's own borrowing.

A CDO whose collateral is tranches of other CDOs, referenced via CDS rather than owned.