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Notional Bond

A standardized bond (in terms of its coupon and maturity) that is used as the basis for bond futures contracts....

Credit Spread Put Option

A credit spread option which gives the holder the right, but not the obligation, to sell a defaultable reference bond...

Coupon

The amount of interest paid annually on a bond or note expressed as a percentage of its face or par...

Monetization

The process of converting something into, or adopting it as, money (i.e., legal tender). It usually refers to the coining...

Bond Par Value

The stated face value of a bond. For illustrative purposes, the par value is assumed to be $1,000, although any...

Bond Total Return

The return from a bond that incorporates the interest received during the holding period and any capital gains (the difference...

Bond Interchangeability

A bond's ability to convert from one form to another. Typically, an interchangeable bond can be converted from coupon payment...

Round-Trip Arbitrage

A type of arbitrage that involves attempting to profit from specific deviations from interest rate parity by entering into a...

Puttable Bond

A bond which gives the holder the right to sell it back to the issuer at specified times for a...

ARBN

It stands for absolute return barrier note; a barrier note that pays the holder (investor), at maturity, the absolute performance...