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MOPS

It stands for municipal option put security; a municipal fixed income security (e.g., a municipal bond) that comes with a detachable…

Principal Protected ARBN

An absolute return barrier note (ARBN) (a structured product) in which the coupon is linked to an underlying security or…

Short Term IRS

An interest rate swap (IRS) whose maturity doesn’t exceed 2 years. A short-term interest rate swaps (STIRS) involves the settlement…

Reverse ZC Swap

A zero coupon swap (ZC swap) in which payments are reversed. That is the zero coupon payment is made at…

STIR

An abbreviation for short-term interest rate contract. STIR contracts may take the form STIR futures, STIR option, STIR swap, etc.…

Stepped Capped FRN

A type of capped floored FRN in which the capped coupon varies over the life of the note/ bond. An…

COBRA

It is an acronym for credit option on Brady bonds. By definition, it is an option whose underlying is the...

PVBP of a Bond

The price value of a basis point of a bond is a measure of the bond price volatility to interest…

MSCB

It stands for moving strike convrtible bond; in Japan, it is a convertible bond in which the conversion price is…

RCDS

It stands for recovery lock CDS; a credit default swap (CDS) entails the exchange of a floating recovery amount for…