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Covered Bond

A type of debt-based derivative instrument that provides a much safer investment than asset-backed or mortgaged-backed securities. This bond is secured by the cashflows generated…

PO

It stands for principal only; the principal-only portion of a mortgage loan or a mortgage-backed security (MBS). Financial institutions, especially...

Principal Only

The principal-only portion of a mortgage loan or a mortgage-backed security (MBS). Financial institutions, especially mortgage financing firms, separate the...

Interest Only

One of two components (strips or tranches) of a mortgage-backed security (MBS) or other types of mortgage structured products (e.g.,...

IO

It stands for interest only; one of two components (strips or tranches) of a mortgage-backed security (MBS) or other types...

Asset-Backed Credit Default Swap

A credit default swap on a mortgage-backed security or an asset-backed security. That means the reference obligation in such a...

CMBS Interest Only

It stands for commercial mortgage-backed securities (CMBS) interest only (IO). These IOs (stripped mortgage products) are coupons stripped from an...

CMBS IO

It stands for commercial mortgage-backed securities (CMBS) interest only (IO). These IOs (stripped mortgage products) are coupons stripped from an...

Synthetic CDO

A credit derivative (originally a collateralized debt obligation) whereby the credit risk on a reference portfolio is transferred between the...

Notional Interest Only

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