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ATM Swap

It stands for at-the-money swap; a swap in which the present value of the net fixed-rate payments is equal to the net present...

OTM Swap

A short form of out-of-the-money swap; a swap in which the present value of the net fixed-rate payments exceeds the net...

CDS

An acronym for credit default swap; a swap agreement that gives the holder the right to sell a contractual obligation (bond, loan) for...

Call CDS

A credit default swap (CDS) option that grants the holder the right to buy credit protection on a specific reference entity during a predetermined future...

LEPO

A low exercise price option, which is, by definition, a call option with an exercise price initially set deep in-the-money....

LADG

It stands for leverage-adjusted duration gap ; a duration gap measure that takes into account a bank's overall exposure to interest rate...

BV

It stands for book value; broadly speaking, it refers to the historical cost of an entity's assets (total assets) minus...

A/E Ratio

A financial ratio that relates assets to owners' equity. It is a measure of the proportion of total assets financed by a...

ATM Volatility

A tool that measures the calculated or implied mid-rate volatility for an ATM option for a specific expiration date. In...

FV

It stands for fair value; the price / exchange price (an amount measured in currency units- CUs) at which an...