Glossary

5 terms

The terms that recur in our analysis. Each begins with a one-sentence definition, then explains how it works and why it matters in a geopolitical reading.

Backwardation
A futures price structure in which the nearest delivery month trades above later months, so the curve slopes downward.
CDS (credit default swap)
The annual price of insuring against a borrower's default, quoted in basis points.
Chokepoint
A narrow passage that seaborne trade must use, and whose closure leaves only expensive alternatives.
Sliding-scale fuel tax (eşel mobil)
A tax mechanism that absorbs part of a rise in world oil prices or the exchange rate by cutting the special consumption tax on fuel.
Term premium
The extra yield an investor demands for holding a long-dated bond.