What Is a Capitalized Cost Reduction?

A capitalized cost reduction is a reduction in the capitalized cost of a loan. The capitalized cost is the total amount of money that is borrowed, including any fees or other charges. A capitalized cost reduction can be used to lower the monthly payments on a loan, or to reduce the total amount of interest … Read more

What Does Bucketing Mean?

The term bucketing refers to the process of allocating securities to specific buckets, or categories, based on certain criteria. For example, a broker may bucket securities based on their risk level, liquidity, or expected return. By doing so, the broker can more easily match buyers and sellers of securities, and can also more effectively manage … Read more