Repo margin is the amount by which the market value of the security used as collateral exceeds the face value...
The capital structure of a collateralized debt obligation (CDO) is made up of three tranches: 1) an equity tranche (also,...
A discount instrument is one that sells at a discount to par value such as Treasury bills, commercial paper, and...
By definition, a deposit is cash amounts, checks or drafts given or endorsed to a bank (depositee) and credited to...
Event risk covenants are triggered by designated events, generally associated with a change in corporate control (e.g., mergers, acquisitions, restructuring,...
LIBOR or the London interbank offered rate is the rate at which international banks charged each other for money borrowed...
A corporate distribution to a stockholder that is viewed by the tax authorities (such as the IRS) as a dividend...
By law, if a company pays dividends, it must pay them in proportion to the number of shares a person...
In order to price a convertible bond using the Black-Scholes model, the following two steps would need to be taken:...
Most bonds pay coupons to the holder on a periodical basis, whilst the bond's par value (principal) is paid back...