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Negative Equity

An equity that has a negative value. This situation arises when an asset is worth less than the money used...

Netting By Novation

The process that is typically arranged at the contract date (not at settlement date) for the purpose of replacing all...

Net Basis

The basis amount that results from adjusting the gross basis for net carry. Net carry is the actual coupon income...

Structured Finance

The pooling and repackaging of economic assets such as loans, bonds, and mortgages, in order to reallocate risks and obtain...

CoCo Reverse Convertible

It stands for contingent coupon reverse convertible; a reverse convertible in which the coupon is made contingent on a specific...

CoCo Bond

It stands for contingent convertible bond; a bond that can be converted into common stocks only when the share price...

Contingent Convertible Bond

A bond that can be converted into common stocks only when the share price rises sharply or a specified amount...

Securitization

A type of structured finance that involves the pooling of assets (or specific types of assets such as receivables) for...

Equity Put Warrant

A warrant (a put warrant) that confers on the warrant purchaser the right to sell to the company one share...

Express Bonus Certificate

A bonus certificate whose payoff consists of the underlying price plus a bonus component/partial downside protection. It is only paid...