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Yield Pick-Up Swap

A bond swap that involves swapping a relatively high-price bond with a relatively low-price bond (otherwise, the two bonds are...

Flip-Flop Bond

A bond that has an embedded option that allows investors to switch between two types of securities. For instance, an...

Bullet Security

A fixed-income security (usually a bond) that has no early redemption features (callability or embedded call option). Bullet securities (bullets)...

Coupon Clipping

The removal of interest coupons attached to a bearer bond so that the bearer might submit them to a bank...

Coupon Stripping

A structuring technique which involves the purchase of ordinary bonds (usually, U.S. Treasury bonds) and the repackaging thereof in a...

CER

It stands for coupon equivalent rate; also known as equivalent bond yield; the yield on a discount bond that is...

Coupon Equivalent Rate

Also equivalent bond yield; the yield on a discount bond that is computed in the same way the yield on...

EBY

The yield on a discount bond that is computed in the same way the yield on a coupon bond is...

Equivalent Bond Yield

The yield on a discount bond that is computed in the same way the yield on a coupon bond is...

Variable Rate Loan

A loan whose interest rate payments change over the life of the loan. Typically, the variable interest rate is tied...