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CMO FRN

An abbreviation collateralized mortgage obligation floating-rate note; a collateralized mortgage obligation (CMO) that pays an adjustable rate of interest that…

GIC

It stands for guaranteed investment contract; a contract (an insurance contract) involving retirement plans that is entered into by an...

CRAN

It stands for callable range accrual note; a debt instrument (range accrual note) where the issuer has the option (call…

TLO

An acronym for traffic-light option, which is an OTC option that belongs to the class of correlation derivatives, and which…

Unfunded CDO

In relation to synthetic CDOs (collateralized debt obligations) where credit exposure is gained through credit default swaps (CDSs), it is...

LOLR

It stands for lender of last resort; the institution (usually a central bank or monetary agency) in a financial system...

NARC

It stands for noon average rate contract, which is by definition an average rate option (ARO) or average rate forward...

LLR

It stands for loan loss reserve; a type of credit enhancement whereby a reserve (specifically, a cash reserve) is created...

DIB

An abbreviation for deferred-interest bond; a special type of deferred-coupon bond in which coupon interest is deferred for a specified…

Documentary L/C

A common method of payment that is used in international transactions to facilitate trade by extending credit to banks’ clients.…