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Premium Put Option

A put option which is embedded in a premium put convertible, giving the bondholder the right to demand redemption of...

Ponzi Scheme

An investment fraud that involves the payment of purported returns to original “investors” (the scheme organizers) or early entrants from...

Principal Only Tranche

A tranche, part of an IO/ OP structure, that receives only the principal repayment on the underlying securitized debt/ collateral....

PO Tranche

It stands for principal only tranche; a tranche, part of an IO/ OP structure, that receives only the principal repayment...

Planned Amortization Class Tranche

A tranche (constituting a type of asset-backed security, ABS) that gives the investors more certain cash flows thanks to its...

PAC Tranche

It stands for planned amortization class tranche; a tranche (constituting a type of asset-backed security, ABS) that gives the investors...

PAC Schedule

Planned amortization class schedule; a principal payment schedule that is figured out by taking the minimum of the principal paydowns…

Putable Bond

A bond which is payable at par to its holder on demand once the lock-out or deferment period expires. This…

Poison-Put Bond

A bond whereby an investor can cash in a security prior to its maturity date if the issuer becomes subject…

Put Turbo Certificate

A turbo certificate that aims to bet on price decreases. The participation in the downward movement of the underlying will…