F-3 fund A fund of funds of funds.

face value Par value.

fallen angel A bond that was investment grade when issued, but has since degraded to junk quality.

Fama, Eugene Scholar who extended the random walk hypothesis as the efficient market hypothesis.

family of funds A group of mutual funds all managed and administered by a single fund management company.

Fannie Mae Official name for what was formerly the Federal National Mortgage Association.

fast Fourier transform An algorithm for rapidly valuing Fourier transforms.

Fastow, Andrew Enron's CFO whose aggressive use of special purpose entities lined his own pockets and lead to accounting scandals in 2001.

FDIC Federal Deposit Insurance Corporation

Fed funds Deposits held by US banks in accounts at their regional Federal Reserve banks.

Fed funds market A market for unsecured short-term loans of Fed funds.

Fed funds rate A rate of interest payable on overnight loans of Fed funds.

Fed Wire An electronic funds transfer system maintained by the Federal Reserve.

Federal Deposit Insurance Corporation An independent agency of the United States Federal Government responsible for insuring bank deposits.

Federal Financing Bank A bank established by the US Congress to consolidate debt issuances by federal agencies.

Federal Reserve The central bank of the United States.

fence A collar.

FFT Fast Fourier transform.

FHC Financial holding company.

financial engineer A practitioner of financial engineering.

financial engineering The field of applied finance devoted to the design and pricing of derivative instruments.

financial holding company A type of holding company authorized under US law following the repeal of Glass-Steagall to hold commercial banks, investment banks and insurance companies as affiliated subsidiaries.

financial risk management Practices by which a firm optimizes the manner in which it takes financial risk.

Financial Services Modernization Act of 1999 US legislation that revoked the Glass-Steagal separation of investment and commercial banking.

first call date The earliest date on which a security can be called.

first mortgage bond A senior mortgage bond.

first notice date The first date on which notice of delivery on a futures contract can be given to the exchange.

fixed-for-floating swap An interest rate or currency swap in which fixed rate interest payments are swapped for floating rate payments.

fixed income arbitrage Any fixed income market neutral trading strategy.

fixed income term structure Refers collectively to a spot curve, forward curve, discount curve, yield curve or any other curve that describes the time value of money.

fixed strike lookback option One of two basic forms of lookback options.

flat (trading) Refers to a bond whose price is quoted as an invoice price instead of a clean price.

floater A fixed income instrument whose coupon fluctuates with some designated reference rate.

floating rate CMO A CMO tranch structured as a floater.

floating rate note A floater issued by a corporate or agency borrower.

floating strike lookback option One of two basic forms of lookback options.

floor A type of derivative instrument that offers protection against declining interest rates.

floorlet One of a series of options that comprise an interest rate floor.

flower bond A type of tax-advantaged bond issued by the US Treasury between 1953 and 1963.

forced conversion Conversion of a callable convertible security forced by a call of the security.

foreign bond A bond issued in one country and denominated in that country's currency by a foreign issuer.

foreign CD A certificate of deposit issued within a country by a domestic branch of a foreign depository institution.

forward Forward contract.

forward contract A trade that is agreed to at one point in time but will take place at some later time.

forward curve 1) A graph of forward prices for different maturities; 2) a graph of forward interest rates for different forward periods.

forward loan A loan that commences on some future (post spot) date.

forward price Market price quoted for a forward contract.

forward rate The interest rate payable on a forward loan that accumulates interest to maturity.

forward rate agreement A cash-settled forward contract on a short-term loan.

forward settlement Trade settlement on some date subsequent to spot settlement.

forward start option A forward on an option.

forward trade A trade for settlement on some future (post spot) date.

Fourier transform An integral transform used in signal processing, physics and financial engineering.

FRA Forward rate agreement.

Freddie Mac Name for what was previously the Federal Home Loan Mortgage Corporation.

free alongside A method for settling physical commodity trades.

free onboard A method for settling physical commodity trades.

Freeman, Robert Goldman Sachs arbitrager who became embroiled in the 1980's insider trading scandals.

FRM Financial risk management.

FRM certification Professional certification offered by GARP.

FRN Floating rate note.

front-end load Sales charge applied at the time an investor buys shares in an open-end mutual fund.

function remapping A type of remapping used in value-at-risk measures.

fund family A group of mutual funds all managed and administered by a single fund management company.

fund of funds An investment fund that invests in other investment funds.

fundamental theorem of algebra An important theorem about the existence of roots of polynomials.

fundamental theorem of asset pricing A theorem that relates the existence of an equivalent martingale measure to the no-arbitrage condition and completeness of markets.

fund management Investment management.

fund management firm Investment management firm.

fund manager Investment manager.

future An exchange-traded derivative that is similar to a forward.

futures spread A long-short futures position.

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