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Hung Convertible

A convertible bond or preferred stock issue whose issuer cannot convert it by force either because it is selling below...

Frozen Convertible

A convertible bond or preferred stock issue whose issuer cannot convert it by force either because it is selling below...

Soft Call

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

PECS

An acronym for par equivalent CDS spread; a measure of the creditworthiness of a bond. It sets the bond’s Z-spread...

Event Risk Covenant

A bond provision that requires that the bond is turned in, or redeemed, at par or at a premium in...

Par Equivalent CDS Spread

A measure of the creditworthiness of a bond. It sets the bond’s Z-spread curve against the CDS contract (CDS spread)....

Manufactured Dividend

A payment that is received by a securities lender for a dividend distributed on a loaned security. By agreement, the...

Market-Linked Debenture

A structured product that constitutes a loan taken by a firm from the market that bears no fixed rate of...

MLD

It stands for market-linked debenture; a structured product that constitutes a loan taken by a firm from the market that...

Reload Option

With respect to an employee stock option (ESO), it is an additional, new share option that is automatically granted when...