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Funding Rate

It has many meanings in multiple contexts. Generally, it is the interest rate that is charged over a funding interval,...

Basis Point Differential

The difference in basis points (BPS) that exists between two positions or rates (yields) or premiums, etc. For example, the...

Sovereign Bond

A bond (broadly fixed-income securities) that is issued by a government to borrow money from the public in order to...

Government Bond

A bond (broadly fixed-income securities) that is issued by a government to borrow money from the public in order to...

Brady Bonds

US dollar- denominated bonds which were issued, mostly in the 1980s, by developing and underdeveloped countries, mainly in Latin America,...

Parent Bond

A bond to which slices or tranches of an issue belong. A fungible issue (sub-tranche) is a debt issue that...

Equity-Linked Bond

An equity derivative, essentially a fixed-income security, whose coupon and/ or final principal repayment is/ are pegged to the return...

Tax-Exempt Bond

A bond (specifically a municipal bond) whose holder is exempted from paying taxes on its interest income. This bond is…

Tax-Free Bond

A bond that is fully exempted from taxation on its interest payment. The interest income on this bond, generally issued…

War Brides

A jargon phrase that refers to the stocks and bonds of companies whose primary business activity is defense contracting. For…