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Discretely Callable Bond

A callable bond that is structured in a way that the issuer can recall it only periodically or on discrete...

Stepped Coupon Bond

A bond with interest coupons that change to preset levels on specific dates. More specifically, the bond pays a given...

Killer Warrant

A warrant that forces redemption of its host bond upon exercise. In other words, the holder of a killer warrant...

Percentage Premium

The difference between the bond’s price and its equity value or parity, expressed as a percentage: Premium = (convertible price-...

Split Coupon Bond

A bond that is issued as a zero-coupon bond but which converts to a coupon paying bond at a specific...

Toxic Convertible Bond

A convertible bond in which the conversion price is not predetermined but is kept floating. This bond converts into the...

Flat Trading

Flat trading has different meanings in different contexts. In relation to bonds, it refers to the status of a bond...

Interchangeable Bond

A bond that may be converted from coupon payment mode into registered form, or from registered form to coupon payment...

Blanket Bond

An insurance instrument that protects against losses caused by employees due to dishonesty, forgery or unauthorized trading. It is blanket...

Structured IO

It stands for structured interest only; an interest-only bond (tranche) that receives the excess interest (difference between the coupon rate...