Global Definitions Database
Access, learn and discover all terms related to the non-listed real estate sector.
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A
ADC Arrangements
An ADC arrangement is an arrangement in which a bank (lender) provides financing for real estate acquisition, development, or construction purposes and has virtually the same risks and potential rewards as those of owners or joint ventures. There is often little risk in such arrangements to the borrower. The lender may advance all or substantially all the necessary funds to complete a project (including fees and interest), may have a share in the residual profits of the project (an equity "kicker"), and must look to the eventual sale or refinancing of the property for repayment of the advances. Such transactions are often structured in a manner that makes default unlikely because there is no requirement for the borrower to make payments while the project is in progress. ADC arrangements should be reported as loans, real estate ventures, or direct investments in real estate in accordance with guidance presented by the AICPA in a Notice to Practitioners issued in February 1986.
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Additional Contingent Interest
Lender participation in the appreciation in value of the underlying property in a participating loan (REIS)
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All-in Interest Rate
The percentage rate charged by a Lender which includes the reference rate (e.g. LIBOR / EURIBOR / SONIA) plus a margin.
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Allocated Loan Amount
The amount of Loan attributed to a particular portion of the underlying collateral, usually a single property within a portfolio of underlying assets.
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Amortization Period
Number of months used to calculate the amount of monthly payments for principal and interest which could be longer than the loan term.
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Asset Liability Matching (ALM)
A form of risk management which entails managing assets and cash flows to satisfy liabilities.
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Asset Originator
The party that has created a loan asset or group of assets by extending credit to one or more creditors.
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Asset-backed securities (ABS)
A security issued as part of a securitisation, which is backed by a portfolio assets, which may or may not be income generating.
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Assignment / Transfer clauses
Typically an assignment is an agreement to transfer all of the rights (but not the obligations) under a contract to a new lender evidenced by an assignment agreement. The specific definition will be governed by local law.
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Attachment Point LTV
The LTV point at which the Senior loan ends and Junior loan starts, for example 55% LTV would typically be the detachment point of a senior loan and the attachment point at which the junior loan would start.
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B
Base Interest
Contractually stated fixed or floating rates in a participating loan (REIS)
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Borrower
The party borrowing money from a Lender. (CREFC, CRE Glossary of Terms, EU Version)
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Break Costs
The cost payable by a borrowerfor early repayment of all or a portion of a loan as outlined in the break clause of the loan agreement.
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Bridge Loan
A short term loan used as interim financing, pending the arrangement of larger or longer-term financing
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Bullet Repayment
A facility where the repayment (principal or principal and interest) is made in one amount on the final maturity date of the loan agreement.
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C
Capital expenditure (Capex) Facility
A loan that must be used for capital expenditure (i.e. investment in physical assets such as land, buildings and equipment).
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Capital Structure
The structure as defined in the vehicle documentation describing the various components of an investments's equity and debt. Also known as "capital stack".
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Caps (Interest)
An interest hedging instrument that provides for maximum increases allowed in interest rates, payments, maturity extensions and negative amortization on reset dates.
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Carve-outs (lending)
Provisions within nonrecourse commercial real estate loans where the borrower may become personally liable in the event of certain egregious acts (e.g. fraud). Recently, lenders have expanded the scope of carve outs to include risks of exposure to the property's economic deterioration or neglect.
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Cash Sweep
The right to redirect cash from an underlying asset to meet debt service obligations where the borrower is unable to fulfil its debt service obligations.
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Commercial mortgage-backed securities (CMBS)
A security which is backed by a portfolio of mortgages secured against commercial properties.
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Compensation Prepayment Proceeds
Payments which are required to be used in mandatory Prepayment.
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Conditions Precedent
Conditions of a loan facility agreement which must be fulfilled prior to a borrower being able to drawdown principal amounts under the loan.
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Conditions Subsequent
Conditions which cannot be satisfied prior to entering into a loan and which have to be satisfied within a certain period of time following entry into the loan. Failure to satisfy these conditions, within an agreed timeframe, is typically an event of default.
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Construction Loan
Any loan where the proceeds are used to finance construction of some kind. In the United States Financial Services industry, however, a construction loan is a more specific type of loan designed for construction and containing features such as interest reserves, where repayment ability may be based on something that can only occur when the project is built. Thus, the defining features of these loans are special monitoring and guidelines above normal loan guidelines to ensure that the project is completed so that repayment can begin to take place
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Contingent Interest
A percentage of property net income or cash flow after debt service in a participating loan.
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Contingent liabilities
An existing condition, situation, or set of circumstances involving uncertainty as to possible outcome (such as Guarantees and/or Carve-Outs) to an enterprise that will ultimately be resolved when one or more future events occur or fail to occur.
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Contractual Interest
The base or minimum interest rate paid exclusive of amounts payable as a result of the participation feature.
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Contractual Principal
The nominal principal of a loan exclusive of amounts payable as a result of any participation feature.
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Credit Committee
The committee that assesses the credit risk of making a Loan to a Borrower. The credit committee ultimately approves the terms on which a Loan is made to that Borrower and the Security it requires from the Borrower.
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Credit Default Swap (CDS)
A financial derivative product that transfers credit risk from one counterparty to another.
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Credit enhancements
Additional collateral, insurance, or third party guarantee required by the borrower generally in exchange for a lower interest rate or cost of capital.
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Credit Rating
Assessment of the creditworthiness of a Borrower in general terms or with respect to a particular debt or financial instrument, usually issued by an independent rating agency such as S&P, Moods or Fitch.
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Cross Collateralization
The act of using an asset that is currently being used as collateral for a loan as collateral for a second loan
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Cure Rights
Cure Rights are designed to remedy a breach of a financial covenant and, within an agreed timeframe, avoid the occurrence of an event of default as a result of such breach.
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D
Debenture
A debenture is a type of instrument which usually contains charges and assignments over all assets and rights of the chargor.
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Debt Fund
See definition Debt Vehicle
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Debt Interest
The ownership of a mortgage note or other note receivable secured by real estate assets owned by another party
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Debt Vehicle
A fundor similar entity that has been set up for the purposes of issuing or investing in loans.
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Debt Yield
Property’s operating income as a percentage of the total principal loan amount
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Default Covenant
A Financial Covenant, the breach of which is an Event of Default.
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Deposit Account
This is one of the accounts the borrowers may be required to maintain. If relevant, it is principally used for holding amounts to be applied in prepayment.
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Development Facility
A loan provided to finance the development of a real estate asset
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Development Margin
Margin applied to a development loan for the period before practical completion.
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Discount margin
Rate above your floating benchmark rate.
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Disposals Account
The Disposals Account is used to hold the proceeds of disposal of a Property pending prepayment of Loans.
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Duty of Care Agreement
An agreement entered into between the Secured Parties and an Asset Manager (AM) or Managing Agent (MA) in which the AM or the MA acknowledges the security over the relevant Properties and in which the parties agree the terms under which the services of the AM or MA, in the event of a default or breach of the owner of the relevant Properties under any agreement, may be continued and under which they may be cancelled.
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E
Euro Interbank Offered Rate (EURIBOR)
Daily reference interest rate for a given period published by the European Money Markets Institute based on the average interest rates at which Eurozone banks offer to lend unsecured funds to other banks in the euro wholesale money market (or interbank market).
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Event of Default (EOD)
Contractual breaches or other events, the occurrence of which gives the lender the right to demand a full and immediate repayment of the loan (subject to cure rights). These are defined within the loan agreement.
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Excluded Recovery Proceeds
Amounts recovered from a Property Vendor or a report provider which do not have to be used in prepayment provided they are used for a particular purpose within a certain time.
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Exit LTV
The anticipated ratio of the principal amount of the loan to the value of the property as at the date of property disposal or repayment of the loan.
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F
Facility Agent
in syndicated facilities (more than one lender) the Facility Agent is the party which acts as an agent for all lenders in dealings with the borrower.
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Financial Covenants
Covenants designed to test the financial strength and performance of the property and the Borrower during the life of the loan.
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First Ranking Mortgage
A fixed security interest over property which ranks in priority to all other claims.
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Fixed and floating charges over assets
Security over an asset. A fixed charge is security over a specific asset of a borrower. A floating charge is a charge over all the borrowers asset. Both only crystalize in the event of default.
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Fixed Rate Debt
Fixed rate debt has a pre-determined or locked interest rate or coupon that is payable at specified dates. Due to its fixed nature, the fixed-rate debt is not susceptible to fluctuations in interest rates.
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Fixed Rate Recourse Debt
An interest rate on a loan secured by assets, which interest rate remains the same for the agreed term in the loan agreement.
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Flexibility for alternative use
Refers to the flexibility of the property's physical structure and the ease with which it might be converted or adapted for another use (e.g. adapting a retail building for use as an office building).
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Floating Rate Debt
Floating rate debt contains a variable coupon that is commonly equal to a money market reference rate, or a federal funds rate plus a specified spread. Although the spread remains constant, the majority of floating rate debt contains periodic coupons that pay interest on that periodicity with variable percentage returns. At the beginning of each coupon period, the rate is calculated by adding the spread with the reference rate. This structure differs from the fixed-bond rate which locks in a coupon rate.
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Foreign exchange difference
IFRS defines exchange difference as the difference resulting from translating a given number of units of one currency into another currency at different exchange rates. In the context of the SDDS, it includes exchange movements and valuation of hedge instruments.
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G
H
Hedged %
The percentage of floating rate debt that has been transformed into fixed rate debt through interest rate swaps or other types of derivatives.
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Hedging Arrangement/Agreement
Any master agreement, confirmation, transaction, schedule or other agreement (in agreed form) entered into or to be entered into by a Borrowerfor the purpose of hedging interest payable under this Agreement.
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hedging instruments
A financial instrument whose cash flows should offset changes in the cash flows of a designated hedged item (asset, liability, or investment).
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High Quality Liquid Assets (HQLA)
The assets that a bank must hold to satisfy its Liquidity Coverage Ratio (LCR) obligations.
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Historical Interest Cover Ratio (Historical ICR)
Interest cover covenant included as a financial covenant and that covenant is to be tested on a historical basis. The definition sets out how Historical Interest Cover is calculated and certain adjustments that are commonly made in calculating both finance costs and passing rental received by the borrowers. If the Company fails to calculate this, the Agent may do so.
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Hold Period
The actual or expected period of time between the purchase and sale of an investment.
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I
Industrial Revenue Bonds
Also known as low floater tax exempt bonds or tax exempt real estate bonds. Originally used as a vehicle by which municipalities could encourage socially responsible investing in the apartment and industrial sectors. They are only available on new construction but are assumable. There are government reporting requirements associated with these low interest rate loans.
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Information Covenants
Undertakings given by borrowers to lenders in a loan agreement to ensure lenders have the information they need, such as financial statements, compliance certificates and a duty to notify a default.
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Insurance Prepayment Proceeds
Amounts received under insurance policies which are to be used in mandatory prepayment.
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Intercreditor Agreement
An agreement between various financiers providing loans or credits to a borrower that reconciles their different (potentially competing) interests. It formalizes their relationship; in particular the ranking of their debt and security, particularly on insolvency, by subordinating junior lenders and regulating the rights of lenders.
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Interest Payment Date (IPD)
Dates on which lenders receive interest payment on the debt instrument they hold. Interest payment dates are usually set at the outset and usually correlate closely to rental quarter dates.
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Interest Period
The period over which the interest due to the lender under a debt instrument agreement is calculated.
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Interest Rate
Annual cost of borrowing paid by the borrower to the lender on the outstanding loan balance. Typically expressed as a percentage.
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Interest rate hedging ratio
Percentage of the nominal value of debt excluding shareholder loans of which the interest rate risk is hedged through derivatives.
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Interest Rate Swaps
A type of hedging where two parties exchange a floating interest rate for a fixed interest rate or vice-versa
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Interest reserve account
The account the borrowermay be required to maintain, principally used to establish a cash reserve which must be used for interest payment shortfalls under the loan.
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Internal Ratings-Based Approach (IRB)
A method of calculating regulatory capital requirements based on an institution's own internal assessment.
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Investment margin (Spread)
In relation to floating interest rates, the rate of interest charged by the lender over and above the relevant cost of funding, such as LIBOR or EURIBOR
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J
K
L
Letter of credit (LOC)
Commitment made by a bank or other party (the "issuer"), upon the application of the issuer's client (the "applicant"), to pay the amount of the letter of credit to a third party (the "beneficiary") upon the beneficiary's submission to the issuer of the documents listed in the letter of credit. By separate reimbursement agreement, the applicant agrees to reimburse the issuer for any liability incurred by the issuer under the letter of credit.
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Leverage
Using debt and other debt-like instruments to acquire assets. In essence, the use of leverage lowers the equity required to fund an investment by sharing the risk of the investment with the lender. Leverage may decrease or increase returns beyond what would be possible through an all equity investment.
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Leverage Limits
Leverage limits are restrictions put on an advisor, typically governed by the fund organizational documents, which may limit the amount or type of leverage that can be used in a Fund. There could also be individual investment level leverage limits as well. Restrictions may include a limit on the maximum percentage of leverage that can be used to make new investments or on total gross asset value, limit the use of recourse vs. non-recourse debt, or place limitations on pledging investor commitments or providing Fund guarantees, among others.
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Leverage Percentage
The most widely used measure of leverage for monitoring financial risks in a real estate portfolio. The Leverage Percentage indicates what proportion of debt a fund has relative to the value of its assets. This measure shows stakeholders in the fund the level of fund leverage along with the potential risks the fund faces in terms of its debt load.
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Liquidity Coverage Ratio (LCR)
A requirement set out in Basel Ill and CRD IV, designed to ensure that banks hold adequate liquid assets to meet their expected outflows over a 30 day time horizon.
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Loan Amortisation
The annualized rate of repayment, usually expressed in % terms, of a Loan's outstanding principal balance.
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Loan Amortization Period
Number of months used to calculate the amount of monthly payments for principal and interest which could be longer than the loan term.
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Loan Covenants
Loan covenants are stipulations in a commercial loan or bond issue that require the borrower to fulfill certain conditions or which forbids the borrower from undertaking certain actions or possibly restricts certain activities to circumstances when other conditions are met. Typically, violation of a covenant may result in a default on the loan being declared, penalties applied or the loan being "called", meaning all future payments due under the loan are deemed to be due and payable immediately. The loan documents typically have provisions to specify soft vs. hard covenants, testing periods, cure methods (if any), and extension options. Typical covenants for real estate related loans stipulate to minimum/ maximum Loan to Value Ratio (LTV), Debt Service Coverage Ratio (DSCR) and Interest Service Coverage Ratio (ISCR).
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Loan Lockout Period
Remainder of time in months a borrower is prohibited from refinancing the loan without defeasance.
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Loan Term
Length of loan in months from time of origination until final payment due.
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Loan to Cost (LTC)
Ratio used to compare the amount of the loan used to finance a project to the cost to build the project. It does not change based on changes in valuation
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Loan to equity
The consolidated total leverage at the vehicle level as a percentage of the NAV of the vehicle.
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London Interbank Offered Rate (LIBOR)
The average interest rate at which major global banks borrow from one another in the London interbank market.
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M
Make-Whole Margin
Payment made as compensation to lender for unpaid interest arising due to early payment of outstanding loan principal, refers to the make-whole provision.
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Make-Whole Provision
A provision which allows a borrower to repay a loan early, without lender consent, but subject to certain payments being made to the lender to compensate them for the loss of interest which would have otherwise been payable until the final maturity date of the loan.
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Margin
The percentage rate of interest charged by lenders over the relevant basis rate reflecting the credit quality of the collateral.
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Mark-to-Market
Revaluing the price of an asset or liability to reflect current market value.
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Material Adverse Effect
This is used as a qualifier to certain representations and undertakings as well as triggering the material adverse change Event of Default. This definition should be considered on a case by case basis and is frequently the subject of negotiation.
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Maturity Date
The date when the Total Principal Balance comes due.
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Maximum LTV
The consolidated total external leverage at the vehicle level as a percentage of the GAV of the vehicle. Depending on the accounting standards, a manager will mark the debt to market, with any gain or loss being reflected in the vehicle’s profit & loss account. Investors’ subscriptions in the form of loans (e.g., for tax purposes) should be excluded from the calculation
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Mezzanine Debt/ Loan/ Mortgage
The capital structure layer of funding between common equity and secured borrowing, usually subordinated (to the senior debt), and secured not by a lien on property, but secured by the ownership of equity interests of a Borrower.
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Minimum Capital Requirement (MCR)
The minimum level of regulatory capital that insurance companies are required to maintain under Solvency II.
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N
Net financing cost
All costs related to external debt (e.g., interest expenses or received, extension fees, prepayment fees, cost of related interest rate swaps), excluding amortization and distribution to investors.
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Nominal value of debt excluding shareholder loans
This includes third party portfolio facilities or credit lines (and any drawn equity bridge), with all currencies converted to vehicle currency.
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Non-participating mortgage loan
an investment secured by a lien on real estate that generally entitles the lender to payments of contractual principal and interest that do not increase based on the underlying operating results of a property.
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Non-Recourse Debt
A loan with no source of repayment beyond the mortgaged collateral
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Number of new / renewed loans
Total number of new loans (additional borrowing/ refinancing)
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O
Obligor
Obligor means the asset owning property company (Company) or a Borrower.
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Outstanding Portfolio Balance
The outstanding portfolio balance is the total outstanding loan value of the entity’s portfolio at the end of the reporting period. Unpaid principal balance (UPB) is a metric used in GRESB data analysis to identify the size of the reported portfolio.
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Outstanding Principal Balance
Outstanding principal balance refers to the aggregate outstanding principal amounts attributable to the loan under the Facility Agreement.
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Over the Counter (OTC)
Refers to the trading of securities and derivatives by counterparties directly rather than through a recognised exchange.
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P
Participated Loan
A loan arranged by a group of lenders, but unlike a syndicated loan, each lender does not have a direct contractual relationship with the Borrower and typically, there is no lead bank/manager.
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Participating mortgage
an investment secured by a lien on real estate that generally consists of three parts: (1) "based interest" payments at contractually stated fixed or floating rates; (2) "contingent interest" payment where the lender is paid a percentage of property net operating income or cash flow after debt service and (3) "additional contingent interest" which is in the form of lender participation in the appreciation in value of the underlying property.
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Payment in Kind (PIK) interest/ Accrued Interest
Payment in Kind (PIK) interest accrues and capitalises periodically over the life of the debt instrument, thus increasing the underlying principal (i.e. compound interest). This is typical of development loans where there is no income at the asset.
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Performance Bond
A type of surety bond that guarantees the contract will be completed according to its terms and conditions of the contract.
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Permitted Payment
Payments permitted as outlined in the loan documentation (e.g. amortisation, or repayments from sales in a portfolio) under the payment waterfall. These payments should be considered on a transaction by transaction basis.
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Prepayment
When a loan is repaid or partially repaid prior to its maturity date.
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Prepayment Fees
A penalty fee which may be charged if a loan is repaid or partially repaid prior to maturity (Prepayment), designed to protect the lender against loss of income should a loan be repaid quickly. The amount or calculation will be specified in the loan agreement. The penalty is usually based on a percentage of the repaid part of the loan.
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Prepayment Penalty
Fees paid by borrowers for the privilege of retiring a loan early. Such charge is provided for in the debt instrument and normally is expressed as a percentage of the loan, an additional interest charge, or a flat fee.
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Private Placement
A private placement is the placing of institutional debt with a non-bank investor, typically an insurance company or pension fund. This provides the ability of non-bank lenders to grant long-term debt finance which may not otherwise be available in the loan or bond markets.
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Property Protection Loan
A loan that is made to finance payments which are required to 'protect' either a specific asset (Property) or the Lender's security over that asset. This may include paying insurance policies, for example.
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Public/Private Partnership (PPP)
This type of partnership involves a collaboration between a government entity and a private sector business. This may be to finance, build or operate projects, such as community spaces (buildings or outdoors) or public transport networks
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R
Recourse Debt
A legal agreement by which the lender has the legal right to collect pledged collateral in the event that the borrower is unable to satisfy debt obligations. Recourse lending provides protection to lenders, as they are assured to have some sort of repayment - either cash or liquid assets. Traditionally, companies that issue recourse debt have a lower cost of capital, as there is less underlying risk in lending to that firm.
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Recovery Payment Proceeds
Amounts recovered from any claim an Obligor may have against a Vendor to be used in mandatory payment.
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Repayment
Any payment made against an outstanding loan, either in accordance with the terms of the loan documentation or an unscheduled Prepayment.
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Residential Mortgage-Backed Securities (RMBS)
An issued security which is backed by a portfolio of mortgages secured against residential properties.
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Restrictions on transfer
The conditions outlined by a manager on the transfer of stakes in a vehicle between parties. Revaluation to fair value of derivative financial instruments held for hedging. The adjustment represents the impact on NAV of the recognition of derivative financial instruments measured at fair value. If a vehicle does not revalue, this should be clearly indicated.
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S
Second Mortgage
A mortgage claim ranking subordinate to the senior mortgage, secured over the real estate asset.
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Securitized Loan
A loan or portfolio of loans which are pooled and re-structured by way of risk apportionment, to provide collateral for issuance of securities.
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Security
Assets pledged by the borrower or another party (as collateral against) amounts lent by the lender to the borrower. Following the occurrence of certain default events, the lender can use the secured assets towards recovering the amounts owed to it. Different from financial securities (stock, bonds, etc.).
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Security Agent
The financial institution that empowered under the faciility agreement to take action on behalf of the lender to enforce Security in case of an event of default. Useful in loan agreements where there are, or will be, more than one lender.
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Senior Loan
First ranking portion of a real estate loan. A loan that ranks higher (in terms of repayment and enforcement of security) than other loans to the same Borrower or borrower group.
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Spens Clause
A clause that allows the borrower under a facility agreement to make an early principal repayment with the provision of a specific early repayment penalty.
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Sponsor
The entity that provides equity to a Borrowerin a real estate finance transaction. The sponsor can also be the investment manager.
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Standalone Sustainable Lending Policy
Policy or guidance document that outlines real estate lending criteria and includes sustainability-related metrics/factors.
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Step in Rights
Rights bestowed under a facility agreement to the lender to step-in and take control of borrower's business transactions with an aim to improve business operations for future adherence to contractual debt obligations.
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Subordinated Creditor
Any creditor of the Borrower which is a party to a Subordination Agreementin favor of the Lender.
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Subordinated Creditor's Security Agreement
An agreement that governs the ranking, or priority of payment of the junior lender and the senior lender in terms of debt waterfall including principal repayment and interest payment and during an event of default leading to enforcement or foreclosure.
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Subordinated Loan
Loans subordinate to senior debt, including stretched senior (40%-60% LTV), junior (60%-70% LTV) and mezzanine financing (70%-85%+ LTV).
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Subordination Agreement
A legal document that establishes one debt as ranking behind another in priority for collecting repayment from a debtor; acknowledges that one party’s claim or interest is superior to that of another party in the event that the borrower's assets must be liquidated to repay the debts.
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Subscription secured credit facilities
Revolving lines, drawn upon to make acquisitions and then paid down from capital calls and/or asset-level borrowing.
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Surety Bond
Ensures contract completion or compensation in the event of a default by the contractor. A project owner (often in development projects) seeks a contractor to fulfill a contract. In the event of the contractor defaulting, the surety company will be obligated to find another contractor to complete the contract or provide compensation to the project owner.
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Sustainability scorecard
Document that outlines key sustainability attributes and risks related to the specific loan.
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Syndicated Loan
A loan in which a number lenders participate, often as a result of an initial lender(s) having sold down some or all of their own participation in the loan.
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Syndicated loan purchaser
The party that purchases an asset or group of assets from an asset originator. (Asset purchaser also refers to investors in mortgage-backed securities).
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T
TIF Notes
"TIF" or Tax Incremental Financing is a public financing method used for redevelopment infrastructure and other city improvement projects. This type of financing uses future gains in taxes to subsidize current improvements that are projected to create those gains.
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Total debt maturities
Nominal value of debt maturing over a pre-determined amount of time, in the form of loans and excluding hedging debt.
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Transaction Document
This incorporates all transaction related documentation, and is wider than just the Facility Agreement.
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Transaction Obligor
This includes entities in addition to the Obligors which are required to comply with, or whose actions are intended to be controlled by, the Facility Agreement – e.g. a Shareholder or a Subordinated Creditor.
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V
W
Weighted average cost of debt
The interest rate on each external debt instrument in the vehicle weighted by the size of such instruments.
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Weighted average cost of debt excluding shareholder loans
The interest rate (base rate and margin) on each external debt instrument in the vehicle weighted by the size of such instruments.
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Weighted Average interest rate of Fund T1 leverage
The average interest rate of both fixed and floating rate debt at period end weighted by the outstanding principal balances at period end.
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Weighted average maturity of debt excluding shareholder loans (Years)
The maturity on each external debt instrument in the vehicle weighted by the size of such instruments
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Weighted Average Remaining term of Fixed Rate Fund T1 leverage
Generally, the classification of a loan as fixed rate debt depends upon what is stipulated in the loan documents without regard to triggers associated with the breach of loan covenants. The measure is calculated as the average remaining term until the maturity date weighted by the outstanding principal balances. The remaining term is defined as the period between the period end and the maturity date measured in years and fractional months. Extension periods that have not been formally exercised should not be included in the remaining term measure. Fund T1 leverage is used for the calculation.
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