A hedging technique (also a type of leapfrogging) which is used to provide cover for a series of exposures such...
The risk that a counterparty to a swap will not make a due payment on a specific reset day. Differently...
An exotic barrier option which has one American-style barrier and one European-style barrier. Conventionally, the American-style barrier is out-of-the-money, while...
A bond (note) that pays interest only if the floating interest rate (such as LIBOR) or an interest rate option...
It stands for short against the box; a short sale against the box of a stock is a trade in...
A structured note (FRN) that pays a floating interest rate referenced to a popular market rate such as LIBOR. Each...
A short sale against the box of a stock is a trade in which the seller actually owns the stock...
A short position in a payer swaption. This position gives the holder the right and opportunity to pay the floating...
An interest rate cap that protects its holder, during a given period of time, against upward movement in the base...
An interest rate collar that defines a maximum level and minimum level for the underlying base rate. In other words,...