Revolver

Definition:

A senior secured loan where the funds are drawn and repaid as needed by the borrower. Revolvers are typically amortising and can usually be called by the borrower with the borrower incurring a fee. Also called revolving credit facility.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Effective margin (EM)

Used with SAT performance measures, the amount equal to the net earned spread, or margin of income, on assets in excess of financing costs for a given interest rate and prepayment rate scenario.

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