T-bill Treasury bill.

TAC bond targeted amortization class bond.

TAN Tax anticipation note.

targeted amortization class A type of CMO bond structured to minimize risk due to high prepayment rates.

tax and revenue anticipation note A type of municipal security.

tax anticipation note A type of municipal security.

tax-backed bond A municipal bond backed by anticipated tax, penalty or fee revenue.

tax-equivalent yield Indicates for an investor the yield a taxable bond would have to earn in order to match, after taxes, the yield available on an untaxed municipal security.

tax-exempt bond Municipal or other bond whose interest is not subject to one or more taxes.

tax spread A (usually negative) yield or interest rate spread due to some tax advantage.

Taylor polynomial In calculus, a polynomial approximation for a function constructed from its derivatives.

Taylor series expansion In calculus, a power series obtained as a limit of Taylor polynomials that may approximate or equal the function from which it is constructed.

TED spread Treasury-Eurodollar spread.

term The length of time between a bond's issuance date and maturity date.

term CD Certificates of deposit with a term of a year or more.

term repo A long-term repo transaction.

term structure Any curve describing some financial quantity as a function of time to maturity or expiration.

Term structure risk That component of interest rate risk due to changes in the fixed income term structure.

theta The Greek factor sensitivity measuring a portfolio's first order (linear) sensitivity to the passage of time.

tier 1 capital Core capital under the Basel Accords

tier 2 capital Supplementary capital under the Basel Accords

tier 3 capital Capital applicable only to market risk under the Basel Accords

tightness, market Bid-ask spread as a component of liquidity.

time deposit A bank deposit that has a fixed maturity.

time draft A draft on which payment is to be made at some future date.

time series A series of observations made over a period of time.

time value A component of the market value of an option.

time value of money Used informally to refer to the fact that the present value of future cash flows decreases with the amount of time until they are to be received.

timing risk costs Transaction costs arising from market movements during the period between an order being placed and that order being filled.

TIPS Treasury Inflation-Protected Securities.

tom-next A loan commencing in one trading day and lasting one trading day.

total return A return on investment calculated from accumulate values reflecting only price appreciation and income from dividends or interest.

total return swap A type of credit derivative.

trading book Under bank regulations, a portion of a bank's balance sheet set side for trading activities.

TRAN Tax and revenue anticipation note.

tranch One class of bonds issued in a securitization that has multiple classes of bonds.

transaction costs Direct costs associated with transacting trades.

transformation procedure One of the three essential components of a VaR measure.

Treasury Treasury security.

Treasury bill US Treasury security with with a maturity of a year or less at the time of issue.

Treasury bond A coupon-bearing Treasury security with original maturity greater than ten years.

Treasury Inflation-Protected Securities Inflation-indexed bonds issued by the US Treasury.

Treasury note A coupon-bearing Treasury security with original maturity greater than one year and up to ten years.

Treasury security US Federal Government debt obligations issued by the Department of Treasury.

Treasury strip A zero-coupon bond "stripped" from the cash flows of a Treasury security.

Treynor ratio A risk-adjusted performance metric used in investment management.

TruPS Trust preferred security

TruPS CDO A CDO that has trust preferred securities as collateral.

trust preferred security Cumulative preferred stock issued by a bank holding company through a special purpose vehicle.

tunnel A type of derivatives hedge.

two-asset correlation option A type of rainbow option.

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