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Bullet Bond

A conventional bond that pays the face value (redemption) at a single date, rather than spreading the payment of which...

Asset Swap

A swap which is composed of two financial instruments: one with a fixed return and the other with a variable...

CDO

It stands for collateralized debt obligation; an investment-grade bond that is backed by a pool of variously-rated debt obligations including...

Collateralized Debt Obligation

An investment-grade bond that is backed by a pool of variously-rated debt obligations including government and corporate bonds, loans, and...

Reverse Yankee Bond

A bond that is issued by a US company (usually a high grade issuer), outside of the US in a...

Benchmark Rate

The rate of return that is considered by investors to be the minimum rate they are willing to accept on...

Barrier Reverse Convertible

A reverse convertible that entails that the holder gives up the potential upside exposure to the underlying in exchange for...

BRC

It stands for barrier reverse convertible; a reverse convertible that entails that the holder gives up the potential upside exposure...

CMBS Interest Only

It stands for commercial mortgage-backed securities (CMBS) interest only (IO). These IOs (stripped mortgage products) are coupons stripped from an...

Accrual Bond

A tranche of a collateralized mortgage obligation (CMO) that accrues by adding the interest amount to the face value of...