A second-order sensitivity; it is a tool that measures of the sensitivity of a bond or portfolio’s duration to a...

In relation to bonds, it is the risk (a type of interest rate risk) that the reinvestment rate will drop...

An investment strategy that involves exiting one sector in order to enter another, in an attempt to maximize profits or...

An interest-only bond (tranche) that receives the excess interest (difference between the coupon rate on the underlying tranches and the...

A bond trading strategy in which profits are made by changing yield spreads among different sectors of the bond market....

A floater (floating-rate note) in which the coupon moves inversely to the movement of the reference rate. That is, if...

The interest payment (coupon) on an inverse floater; the floater offers a coupon that increases when interest rates fall and...

A collateralized mortgage obligation (CMO) that is structured as inverse floater tranches. The CMO will earn interest at rates that...

It stands for inverse interest only; an interest only (IO) security that pays a coupon inversely related to market rates...

It stands for principal-protected market-linked debenture; a market-linked debenture (MLD) whose issuer promises to pay back the principal amount (face...