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Convexity Adjustment

One of three types of adjustments that should be made to the forward value of the underlying variable in a...

Convexity

Though it has several meanings in different contexts, it is usually defined as a tool that measures the sensitivity of...

Credit Forward

A credit derivative which constitutes a forward contract on a credit spread. More specifically, it is a single period OTC...

Credit Collar

A variation of an equity collar that allows investors to generate cash proceeds while still receiving downside protection (though at...

Credit Spread Swap

A swap in which one counterparty makes a fixed payment to the other counterparty against a floating spread that corresponds...

Credit Event Cash Settlement

In the context of credit default swaps (CDS) and similar credit derivatives, settlement takes place once a credit event (bankruptcy,...

Credit Arbitrage Swap

An interest rate swap in which two counterparties exchange their credit comparative advantages (in terms of credit rating or creditworthiness)...

Credit-Linked Note

A credit-linked hybrid that combines a note with a credit default swap. The face value of the note payable at...

Crush Spread

A commodity trading strategy that is used in the soybeans futures market and involves the purchase of soybean futures and...

Collared Forward

It is a forward contract in which one counterparty (the long) buys an out-of-the-money put option and sells an out-of-the-money...