An interest-only bond (tranche) that receives the excess interest (difference between the coupon rate on the underlying tranches and the...

A bond trading strategy in which profits are made by changing yield spreads among different sectors of the bond market....

Broadly speaking, it is the use of leverage in the structure of an investment. It is a structural component of...

A repo agreement in which a special collateral (SC) is posted by the borrower as requested by the lender, who...

The interest rate is said to be simply compounded (simple compounding) if it is paid at the end of the...

A special purpose vehicle (SPV)/ special purpose entity (SPE) that is used in the process of securitization and involves a...

A type of warrants whereby a company grants an investor (warrantholder) a contractual right (without the obligation) to subscribe to...

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

A call option whereby a convertible bond (CB) can be called back if the share price exceeds a specific level...

The pooling and repackaging of economic assets such as loans, bonds, and mortgages, in order to reallocate risks and obtain...