by Butterick McJobber August 6, 2009
Get the valure mug.(FINANCE) patent pending a financial derivative that splits the value of underlying asset in various proportions, each of which has a specific seniority level (less senior cannot be executed before the senior one). It allows the owner to claim either fixed monetary value or variable value share of underlying asset, depending on the specific Tranched Value Security's seniority.
A Tranched Value Security (TVS) allows one to get a risk and return exposure to the specific level of underlying asset price risk, as opposed to previously existent derivatives that allowed to do so with the entire asset price only. Within such design of financial security, owner of TVS is able to reap significant profits by taking limited risk.
One could issue a Senior and Junior Tranched Value Securities, each having a variable value share of 50%, and fixed value share of $40, backed by (say) one Bitcoin when it's price was $100. If consequentially the Bitcoin price declines to $80, the Senior TVS would remain at $50 (0% return), while the Junior TVS would become $30 (-40% return). With subsequent price correction to $110 per one Bitcoin, both TVSs would have a claim of 50% of market price ($55), making the return of Senior TVS +10%, and return for Junior TVS +83%.
A Tranched Value Security (TVS) allows one to get a risk and return exposure to the specific level of underlying asset price risk, as opposed to previously existent derivatives that allowed to do so with the entire asset price only. Within such design of financial security, owner of TVS is able to reap significant profits by taking limited risk.
One could issue a Senior and Junior Tranched Value Securities, each having a variable value share of 50%, and fixed value share of $40, backed by (say) one Bitcoin when it's price was $100. If consequentially the Bitcoin price declines to $80, the Senior TVS would remain at $50 (0% return), while the Junior TVS would become $30 (-40% return). With subsequent price correction to $110 per one Bitcoin, both TVSs would have a claim of 50% of market price ($55), making the return of Senior TVS +10%, and return for Junior TVS +83%.
Buying a Senior Tranched Value Security is a way to get a long position in the underlying asset's potential returns, with significantly limited downside potential.
Buying a Junior TVS is a way to get substantial return potential, surpassing that of leveraged positions, while having no chance of being liquidated.
Selling a Tranched Value Security (TVS) is a way to get rid of the desired either upper (exposing oneself to greater returns) or lower part (exposing oneself to less volatile returns) of price risk of underlying asset.
Buying a Junior TVS is a way to get substantial return potential, surpassing that of leveraged positions, while having no chance of being liquidated.
Selling a Tranched Value Security (TVS) is a way to get rid of the desired either upper (exposing oneself to greater returns) or lower part (exposing oneself to less volatile returns) of price risk of underlying asset.
by Derivatives Powerhouse January 21, 2021
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1) A meaningless phrase that English teachers like to throw around to prevent students from doing book reports on anything worth reading.
2) A phrase that means that something is worthless, meaningless, or a lie.
2) A phrase that means that something is worthless, meaningless, or a lie.
1) "Of course you can't read Harry Potter for your book report, it has absolutely no literary value."
2) "She told me she's never had sex before."
"Dude, that's got no literary value."
2) "She told me she's never had sex before."
"Dude, that's got no literary value."
by M4d_Baumer February 7, 2010
Get the Literary Value mug.by Anonymous March 21, 2003
Get the mean value theorum mug.Valtteri is an average gamer with no intent to stop ever. Usually spends his days playing games, eating ass and going to gym. Usually bearded, goofy and lil fuckboy.
by Bigass5head November 23, 2021
Get the Valtteri mug.A high value like is when you get a like for an activity on Facebook from someone who is one of the following:
a.) Highly attractive
b.) Particularly selective with their likes
c.) Someone who regularly posts good content themselves
a.) Highly attractive
b.) Particularly selective with their likes
c.) Someone who regularly posts good content themselves
Roger: "Hey dude, did you see that hot girl liked your Facebook status?"
Harry: "DANG! That's a high value like if ever I've seen one!"
Harry: "DANG! That's a high value like if ever I've seen one!"
by EddceLLent April 16, 2014
Get the high value like mug."aww man i totally vaulted that massive horse o'er there! Twas f**king amazin' dude"
"aww man wicked i might try vaulting that car naa!"
"aww man wicked i might try vaulting that car naa!"
by Megz May 13, 2005
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