A bull note whose principal is protected (by the so-called principal protection feature), as opposed to an unprotected bull note....

A cap that is placed on a resetting or periodic interest rate. It is usually purchased by a borrower who...

The risk that mortgage brokers encounter in their business- i.e., provision of commitments to mortgage borrowers. It arises from adverse...

The unrestricted or unconditioned right of an issuer to redeem a convertible. More specifically, the bond may be redeemed without...

A Latin phrase that means "on equal footing", "with equal pace", or "with equal step". Pari passu clauses are very...

An acronym for par equivalent CDS spread; a measure of the creditworthiness of a bond. It sets the bond’s Z-spread...

A measure of the creditworthiness of a bond. It sets the bond’s Z-spread curve against the CDS contract (CDS spread)....

Planned amortization class bond; a tranche of a collateralized mortgage obligation (CMO) that converts a long-term mortgage product with irregular...

A phenomenon that arises when a planned amortization class (PAC) schedule is not met even if prepayments on the collateral...

It stands for participating convertible preferred stock; a combination of a redeemable preferred stock with common stock. The resulting stock...