A bond swap that involves swapping a relatively high-price bond with a relatively low-price bond (otherwise, the two bonds are...

The difference between the CDS spread and par equivalent CDS spread: PECS basis = CDS spread - PECS It captures...

The danger (risk) that some unexpected event will take place and increase the credit risk of an issuer, hence badly...

A floater (floating-rate note) that gives the bondholder the right to convert a note with a long maturity date or...

A bond that has an embedded option that allows investors to switch between two types of securities. For instance, an...

A floater (floating-rate note) that gives the bondholder the right to convert a note with a long maturity date or...

A fixed-income security (usually a bond) that has no early redemption features (callability or embedded call option). Bullet securities (bullets)...

A floating-rate note (FRN) in which coupon rates (coupon reset rates) are subject to an upper limit. Like standard FRNs,...

A floater (floating-rate note/ FRN) whose principal never matures, i.e., it doesn't have a redemption payment and only makes perpetual...

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