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Convexity

A second-order sensitivity; it is a tool that measures of the sensitivity of a bond or portfolio’s duration to a...

Reinvestment Risk

In relation to bonds, it is the risk (a type of interest rate risk) that the reinvestment rate will drop...

Structured Interest Only

An interest-only bond (tranche) that receives the excess interest (difference between the coupon rate on the underlying tranches and the...

Sector Swap

A bond trading strategy in which profits are made by changing yield spreads among different sectors of the bond market....

Dual-Index Floater

A bond (floater) with a coupon that depends on two different floating-rate indexes. Typically, this bond pays an above-market fixed-rate...

Modified Duration

A bond duration that expresses the bond yield with a compounding frequency of a specific number of time per year,...

Blended Price

The weighted average price that is paid to stockholders in a two-tier tender offer. For instance, if 60% of shares...

Planned Amortization Class Bond

A tranche of a collateralized mortgage obligation (CMO) that converts a long-term mortgage product with irregular and unstable cash flows...

Floating Rate Convertible Bond

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

Marathon Bond

A drachma- denominated bond that was issued by a non-resident (non-Greek entity) in the Greek domestic market. A marathon bond...