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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...

PT Floating-Strike Lookback Option

A floating-strike lookback option in which the lookback period starts at inception (contracting date/ trading date or the date the…

PT Fixed-Strike Lookback Option

A fixed strike lookback option in which the lookback period (partial time- PT) starts at a preset date after the…

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.…

CET1

The capital of a bank or financial institution that consists of paid-in capital, capital reserve, surplus reverse, general reserve, undistributed...

GBM

It stands for geometric Brownian motion; a process that reflects the time-evolution of an asset price. It is a stochastic...

CUPS

It stands for currency-protected swap. A cross currency basis swap which doesn’t involve currency conversion. For example, assume short-term interest…

OIB

It stands for order imbalance; a situation that arises when an exchange adjusts its quotes in the opposite direction of...