A hybrid financial instrument is a financial instrument that is embedded with certain types of derivatives (embedded derivatives). The instrument plays host to...

A financial security that has the characteristics of debt and equity. A classic example of hybrids (hybrid securities) is the preferred stock (preference stock) that constitutes an...

A financial security that has the characteristics of debt and equity. A classic example of hybrids (hybrid securities) is the preferred stock (preference stock) that constitutes an...

Haircut has different meanings in different contexts. In relation to repo transactions, haircut (repo haircut) is the collateral (repo collateral)...

A syndication/ syndicate (loan syndication) is a group of financial institutions (e.g., banks) that "collectively" lend money (a loan) to...

Discount is a reduction or deduction (or concession) in the sale price that is extended by a seller to a...

Synthetic structures can be built entirely out of CDSs rather than real assets. In a typical cash deal, the investors...

A structured note is a debt security that is issued by a financial institution on an underlying such as a...

Repo margin is the amount by which the market value of the security used as collateral exceeds the face value...

The capital structure of a collateralized debt obligation (CDO) is made up of three tranches: 1) an equity tranche (also,...