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Forecast Volatility

The underlying volatility that is anticipated over the life of a derivative contract such as an option, a futures contract, etc. It is the amount by...

Expected Volatility

The underlying volatility that is anticipated over the life of a derivative contract such as an option, a futures contract, etc. It is the amount by...

Expected Spot Price

The market’s average opinion about what the spot price of an asset will be at a specific time in the...

Credit Spread 01

With respect to credit default swaps (CDS), it is the credit exposure of the swap at a given point in time (it...

Notional Leverage

The use of derivatives such as options and swaps in the construction of a portfolio of assets/ investments. Notional leverage relates to other types of leverage...

Floored Floater

A floater in which the coupon (interest payment) is floored, i.e., cannot be less than a minimum level (the floor). Floored floaters are capital guaranteed...

CDS DV01

The change in the value of credit default swap (CDS) in reaction to a one basis point increase in the underlying spread, or underlying...

Credit Default Basis

The difference between the synthetic credit risk premium (the price of credit risk quoted in a credit default swap) and the...

CDS Basis

The difference between the synthetic credit risk premium (the price of credit risk quoted in a credit default swap) and the...

CDS Par Spread

The spread that makes the value of a credit default swap (CDS) with the same maturity equal to zero at the present....