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Banking

Bond Floor of a Convertible

The value of a convertible bond (CB) without its conversion feature, i.e., only as a straight bond. The bond floor...

Index-Linked Bond

A bond whose return is linked to some economic index (such as consumer price index, CPI). This includes both interest...

Bond Yield

The single discount rate which, when applied to all cash flows including principal repayment, give a bond price equal to...

Current-Coupon Issue

An issue of debt securities that carries an interest rate very close to the prevailing market rates (in the secondary...

Benchmark Bond

A standard bond against which the performance of other bonds is related or measured. Government bonds (of stable and credit-worthy...

Benchmark Issue

An issue of debt securities that carries an interest rate very close to the prevailing market rates (in the secondary...

Bellwether Issue

An issue of debt securities that carries an interest rate very close to the prevailing market rates (in the secondary...

Issuer Swap

A swap by which a low-rated issuer can sell its debt under the name of another issuer. A low-rated bank...

In-The-Money Warrant

A warrant whose exercise price is below the price of its underlying at a given point in time. In other...

Formula Value

A component of the value of a warrant (warrant value) that is measured as the difference between its underlying share...