Gamma
A measurement of the change in delta with respect to a unit change in the underlying futures price. See delta.
General obligation (GO) Bonds
Municipal bonds backed by the full faith and credit (taxing and borrowing power) of the municipality issuing the bonds.
General obligations
Debt that is payable from the general funds of the issuer and not from specially designated sources or assets.
Gilt-edged
A bond that is high grade and meets its required payments of principal and interest with no difficulty.
Ginnie Mae Guarantee
Ginnie Mae guarantees the timely payment of principal and interest on its securities, backed by the full faith and credit of the United States.
Ginnie Mae I MBS
Modified pass-through mortgage-backed securities on which registered holders receive separate principal and interest payments on each of their certificates. Ginnie Mae I MBS are single-issuer pools. Principal and interest payments are made on the 15th day of each month.
Ginnie Mae II MBS
Pass-through mortgage securities on which registered holders receive an aggregate principal and interest payment from a central paying agent on all of their Ginnie Mae II certificates. Ginnie Mae II securities are collateralized by multiple-issuer pools or custom pools, which contain loans from one issuer, but interest rates may vary within one percentage point. Principal and interest payments are made on the 20th day of each month.
Ginnie Mae Issuer
A mortgage lender who is eligible to participate in Ginnie Mae's MBS program.
The Government National Mortgage Association is a wholly owned U.S. government corporation within the Department of Housing and Urban Development. Ginnie Mae was created to support a secondary market in government-insured and guaranteed mortgage loans. Ginnie Mae guarantees the timely payment of principal and interest on its securities. The full faith and credit of the United States guarantee these payments. Ginnie Mae securities are backed by pools of FHA, VA and RHS insured or guaranteed mortgages.
Give-up
A transaction between three brokers where one does not use his/her name.
Global debt facility
The issuance platform used by most government-sponsored enterprises (GSEs) when issuing "global" debt into the international marketplace or a particular foreign market. The debt securities may be U.S. dollar or foreign-currency denominated. It has the same credit characteristics as non-global debt but is more easily "cleared" through international clearing facilities.
GLOBEX(r)
A global after-hours electronic trading system.
Government-sponsored enterprises (GSE)
Financial entities created by Congress to fund loans to certain groups of borrowers such as homeowners, farmers, and students.
Government bonds
Bonds issued by governments or agencies of governments, which may include foreign as well as U.S. governments.
Government National Mortgage Association (GNMA)
Also known as "Ginnie Mae". An agency operated by the Department of Housing and Urban Development to purchase mortgages from private lenders, package them into pass-through securities and sell them to investors. The securities are backed by the U.S. government and are fully taxable.
Government Securities Clearing Corporation (GSCC)
Brings the efficiencies of automated clearance and settlement to brokers, dealers and banks trading in the U.S. Government securities marketplace.
Grantor trust
Special-purpose vehicle set up to issue fixed-rate capital securities and use the proceeds to purchase debt of the parent company. Investors who hold interest in the trust are taxed as if they owned pro rata undivided interest in the trust's assets.
Gross Domestic Product (GDP)
The value of all final goods and services produced by an economy over a particular time period, normally a year.
Gross National Product (GNP)
Gross Domestic Product plus the income accruing to domestic residents as a result of investments abroad less income earned in domestic markets accruing to foreigners abroad.
Gross processing margin
The difference between the cost of soybeans and the combined sales income of the processed soybean oil and meal.
Guaranty fee
Compensation paid by a lender to Fannie Mae for the guarantee of timely payments of principal and interest to MBS security holders.