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Catastrophe Bond

A high-yield, asset-based debt security that is issued by an insurance company with principal, interest, or both linked to the...

Convertible Bond

A bond that is issued by a firm that allows it to be converted into equity at certain times using...

Fallen out of Bed

A situation in which a stock price drops sharply, usually as a result of unfavorable news or developments concerning the...

Fallen Angels

Bonds that were investment grade (AAA, for example) at the time of issue, but have thereafter lost their top rating...

Extendible Reset Bond

A floating rate security in which the coupon can be changed in accordance with market conditions, allowing whereby to the...

Callable at a Premium

In the context of bonds (specifically bond indentures), this refers to a term providing for a premium to par value…

Collateral Trust Bond

A bond that gives its holder a claim against financial asset (i.e., securities) rather than against real or physical assets.…

Capital Index Bond

An instrument which is used to link the cash flows from a bond to an inflation index. In this bond,…

Short Coupon

An interest payment (coupon) that covers a shorter period than the other coupons on a bond. For example, in a…

Convertible

An instrument (part debt and part equity) that gives the holder the right, but not the obligation, to exchange a...