A CMO tranche in which the monthly coupon rate is typically set equal to a reference rate such as LIBOR....

A loan whose interest rate payments change over the life of the loan. Typically, the floating interest rate is tied...

A debt instrument (note) which comes with a step-up coupon; the amount of its coupon increases over time to maturity....

A tranche (specifically, a CMO tranche) that is designed to protect investors from prepayment risk. To that end, it absorbs...

A debt instrument that promises investors (holders/ buyers) a single fixed payment on a preset future date. In other words,...

The last tranche in a collateralized mortgage obligation (CMO). Periodic interest accrues on a Z-tranche but no cash payments will...

An tranche of a collateralized mortgage obligation (CMO) that accrues by adding the interest amount to the face value of...

The market risk premium (MRP) that is computed using historical data available for a past period. It is the observed...

The market risk premium (MRP) that is computed using historical data available for a past period. It is the observed...

A statistical model, devised in the 1960s by Edward Altman (of New York University), which is used to predict the...