Underlying asset
Invested asset underlying a derivative contract. It may consist of raw materials (e.g., gold, sugar, coffee, etc.) or financial assets (e.g., interest rates, securities and equity indices).

Unit-linked
Life-insurance polices whose benefits are linked to the value of investment funds.

Unsecured loan
Not backed by a lien (or other real guarantee).

Upgrade
Upwards adjustment of a rating.

Upper tier 2
Hybrid capital instruments (for example, perpetual loans) representing the upper portion of supplementary or tier 2 capital.