Re-establishing an original position taken by an option buyer, undoing whereby a previously made conversion or reversal of an option…

A synthetic structure that consists of a single tranche. It is simpler than a standard synthetic tranche and can be…

One of the numerous names for corridor option. By definition, it is a path-dependent option that is typically embedded in…

An action whereby the U.S. Federal Reserve (the Fed) cuts back- or taper- its bond purchases. Usually, the Fed buys…

A call or put option whereby the holder has the retroactive right to purchase (if a call) or sell (if…

In general, it is the sale of goods or assets at tremendously lower or reduced prices to ensure a quick…

A type of callable LIBOR exotic in which the underlying instrument is a plain-vanilla fixed-for-floating swap. Therefore, the coupon at…

An insurance instrument that protects against losses caused by employees due to dishonesty, forgery or unauthorized trading. A fidelity bond…

An interest rate swap in which the floating rate is set in arrears. This means, the floating rate is determined…

A floating-rate note (FRN or floater) in which coupons are reset quarterly or semi-annually to the coupon on the newly…