Underlying


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Related to Underlying: Underlying assumptions

Underlying

What supports the security or instrument that parties agree to exchange in a derivative contract.

Underlying Instrument

A security, commodity, or other asset described in a derivative contact. For example, in an option contract giving the holder the right to buy so many shares of AT&T, the underlying instrument is stock in AT&T. Likewise, in a futures contract on so many barrels of refined oil, the underlying instrument is refined oil.
References in periodicals archive ?
? The United States grew underlying net sales 4% (+6% reported), emerging markets grew underlying net sales 3% (+1% reported), and underlying net sales in our developed international markets declined 3% (-5% reported)
* Delivered underlying (1) and net earnings of $4.4 billion and free cash flow (3) of $2.9 billion
We will have the right and duty to defend the insured against any "suit" seeking damages for such "bodily injury" or "property damage" when the "underlying insurance" does not provide coverage or the limits of "underlying insurance" have been exhausted.
The heightened tendency of individuals and businesses to sue for redress of perceived or actual wrongs in the current environment, along with the large size of settlements awarded to plaintiffs, adds urgency to the addition of umbrella insurance to an underlying policy.
Furthermore, the transaction's ongoing costs are likely to be covered by the payments from the underlying securities.
As part of its review of the underlying transaction, Moody's has incorporated the risk of additional losses on the notes, in case the notes become unhedged following a swap counterparty default.
downgrade on 14 November 2013 of the underlying notes.
Underlying profit from operations improved in the group's Professional Services, Support Services and Infrastructure Investments units but showed a decline in Construction Services, primarily due to anticipated margin decline in US construction.
The Company anticipates a first half FY12 reported NPAT in the range of A$50-55 million, with underlying NPAT expected to be around A$50 million.
A firm that issues mandatory exchangeable debt requires bondholders to exchange their bonds for shares of the underlying firm in which the issuing firm has a stake.
The luxury brand said that strong performances in London, Beijing, Hong Kong and Paris had pushed underlying revenues up by 21% in the three months to December 31.