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Horizontal Risk

The risk that arises from inability of a hedger/ portfolio manager to hedge against a change in the shape of...

Yield Curve Risk

The risk that arises from inability of a hedger/ portfolio manager to hedge against a change in the shape of...

Curve Risk

The risk that arises from inability of a hedger/ portfolio manager to hedge against a change in the shape of...

Interest Rate Risk

Generally, it is the risk that arises from changes in interest rate which impact the value of interest-bearing securities/ investments...

Nominal Value of a Convertible Bond

The unit size of a convertible bond. It is amount for which a bond can be redeemed at maturity. It...

Deferred Equity Security

A type of equity security that comes in the form of preferred shares or convertible bonds that can be exchanged...

Deferred Equity

A type of equity that comes in the form of preferred shares or convertible bonds that can be exchanged at...

Par

The face value (par value) of a bond or a similar debt security that is used to figure out the...

Nominal Exercise Price

The exercise price of an option whose underlying is a Ginnie Mae certificate. This price is equal to the dollar...

Nominal Gearing

The price of the underlying of a warrant divided by the price of the warrant. More specifically, it is the...