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Puttable Floater

A floater that can be given back to the issuer by the holder at put price before maturity date. In...

Clean Price of Bond

The quoted price of a bond. Adding accrued interest to the quoted price gives the so-called dirty price. The dirty...

Matador Bond

A bond that was issued on the Spanish market, denominated in a currency other than the peseta. In this sense,...

Companion Tranche

A tranche (specifically, a CMO tranche) that is designed to protect investors from prepayment risk. To that end, it absorbs...

Running Yield

The running yield on a convertible is similar to the dividend yield on a share of stock. It is calculated...

Puttable Bond

A bond which is payable at par to its holder on demand once the lock-out or deferment period expires. This...

Puttable Convertible Bond

A convertible bond that is embedded with a put provision. In other words, it allows the bondholder to put or...

Current Yield of a Bond

The actual return a bondholder will receive on the bond, based on its current market price. It is given by:...

Ratchet Bond

A rate-adjustable debt instrument that has a coupon rate that adjusts periodically at a specific spread over a non-money market...

Yield To The Immediate Point

The yield which is calculated using the point at which half of the bonds (known as sinking fund bonds) in...