A ratio that relates the annual dividends from a common or preferred stock to the stock’s market price per share: Dividend yield = dividends...

The bankruptcy costs that arise from cash outlays  that relate to bankruptcy process such as fees paid to lawyers, accountants, administrators, liquidators, and investment bankers involved in bankruptcy proceedings....

A structured product that gives the holder an opportunity to buy an underlying asset at less than market price (i.e., with a discount)....

A financial product (derivative) that tracks the performance of an underlying asset on a one-to-one basis. In other words, if...

In connection with convertibles, it stands for discount reverse convertible; a reverse convertible which consists of a zero-coupon bond (discount bond) and a...

A reverse convertible which consists of a zero-coupon bond (discount bond) and a plain vanilla put option. The investor issues the put option (short put)...

A duration measure that is derived from multiplying a bond's modified duration by the bond price. It is the price change for a 100 basis points change in yield....

A convexity measure that captures the the approximate change in a bond's dollar price that is not explained by duration. Dollar convexity= convexity ×...

A technique which is used to convert an interest rate of a given period into an interest rate of a...

A measure of the mismatch between assets and liabilities. By definition, it is the weighted duration of assets minus the product of the...