Banking

Designer CD

April 14, 2021
Derivatives

Credit Event Cash Settlement

April 14, 2021

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It stands for contingent coupon reverse convertible; a reverse convertible in which the coupon is made contingent on a specific event such as trading in a range in order to have an enhanced coupon. The reverse convertible will pay higher than usual coupon when the specified event takes place. Otherwise, its coupon remains unchanged and the convertible continues as a normal reverse convertible.

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