Glossary - L

Any claim for money against the assets of a company, such as bills of creditors, income tax payable, debenture redemption, interest on secured and unsecured loans, etc. Although on balance sheet shareholder’s equity is shown under liability, it has no claim on the assets of a company, unless it goes into liquidation.

Often used as a basis for pricing Euroloans. LIBOR represents the interest rate at which first class banks in London are prepared to offer dollar deposits to other first class banks

Liquidity refers to the ease with which an asset, or security, can be converted into ready cash.

In the case of Redemption / Switch out of a Unit, the sum of money deducted from the Applicable NAV on the Redemption / Switch out and in the case of Sale/ Switch in of a Unit, a sum of money to be paid by the prospective investor on the Sale / Switch in of a Unit in addition to the Applicable NAV.