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Zero-Coupon Indexed Bond

An index linked bond that pays no coupon (hence, the zero coupon), whilst repayment of its principal is linked to...

Forward Rate

In relation to bonds, forward rate denotes the future yield on a bond (e.g., T-bond, T-note or T-bill). Simply put,...

Reverse Convertible

A convertible that is associated with an embedded put option, giving the issuer the right to put it (i.e., sell...

Reverse a Swap

The process that involves restoring a bond portfolio to its former position before the original swap. This may usually take...

Superfloater

A debt instrument (such as a bond, note, etc) in which the coupon rate depends on some multiple of the...

Super Poison Put

A covenant in a bond issue that allows a bondholder to sell, or put, a bond back to the issuer...

Above-Water Asset

An asset whose market value exceeds its book value. In other words, assets such as bonds, CDOs, mortgages, are said...

Wedding Warrant

A warrant which protects the issuer from a potential increase of its outstanding debt above the initial level, in the...

Notional Interest Only

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

Notional IO

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