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Al-Mustarsil

Arabic (المسترسل) for a buyer who does not haggle over the price (i.e., takes the price for granted). In general,…

Step-Down

In the context of subprime deals, it is a provision that entails the conversion of deal structure from sequential pay…

Awaridh al-Ahliyah

Impediments to legal competence. More specifically, awaridh (plural of aridhah) are all emerging shortcomings or deficiencies that deprive a competent…

Subprime Trigger

With respect to subprime deals, it a trigger that determines the collateral tests. It is one of the specific features…

Long Calendar Straddle

A calendar straddle (horizontal straddle) that is designed to profit as the underlying is believed to stay stagnant over a…

Spring Loading

The practice of granting options (employee or executive stock options– ESOs) just before the announcement of key information that is…

LIBOR-OIS Spread

The difference between three-month LIBOR and the overnight index swap rate (OIS rate). It is an indication of the amount…

Serial Issue

A bond issue (particularly a municipal issue) in which a certain proportion (installment) matures at regular intervals (e.g. each year)…

Long Calendar Call Spread

A calendar call spread that is established by selling a front-month call option at a given strike price and buying a…

Serial Bond

A bond (particularly issued by municipalities) in which a certain proportion (installment) matures at regular intervals (e.g. each year) until…