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CDS Tranche Option

An option on a CDS tranche. It gives the holder the right, but without the obligation, to buy or sell...

CMBS Loan

It stands for commercial mortgage backed security loan; a type of real estate loan that is collateralized by a first...

CAPM Premium

An alternative term for systematic risk premium; the risk premium for systematic risk. It is the risk premium against the...

Convertible Bond Sensitivities

The correlations which are observed between a convertible’s theoretical value and relevant influential factors such as the underlying stock price,…

Coupon Leverage

In relation to floaters and inverse floaters (and other similar floating rate instruments such as inverse floating-rate CMO), it is...

Commercial Mortgage-Backed Security

A fixed-income security (investment, instrument, etc.) that is backed by mortgage loans on commercial real estate rather than residential properties...

CMBS

It stands for commercial mortgage-backed security; A CMBS is a fixed-income security (investment, instrument, etc.) backed by mortgage loans on...

Collared FRN

A floating-rate note (FRN) which has a minimum and a maximum interest rate, i.e., an embedded collar. This collar has…

CMO Equity

The cash flow amount(s) that remains unpaid on each payment date after all payments on the collateralized mortgage obligation tranches...

CMO Residual

The cash flow amount(s) that remains unpaid on each payment date after all payments on the collateralized mortgage obligation tranches...