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Yield Curve Trading

A trading in which the underlying is the yield curve. Traders and investors use various strategies to buy the interest...

Yield-Yield Swap Spread

A swap spread which measures the yield of a specific treasury security against the par swap rate of a swap...

Year-On-Year Inflation Swap

An inflation swap where the two counterparties exchange an inflation rate against a fixed rate every year. This swap is...

Yield-Yield Swap

A swap whose maturity matches that of another instrument. This arises when an investor tries to synthetically hedge a bond/...

Black-Scholes Equation

The differential equation that is used, in the Black-Scholes model, to calculate the price or theoretical value of a European...

Benefit of Carry

The benefit of carry arises when the income gained on holding an asset (mainly, interest amounts or dividends) exceeds all...

Coupon-Currency Swap

An interest rate swap in which both counterparties pay fixed rate in their respective currencies. It is a type of...

Callable Floater

A floater that can be called by the issuer before maturity date. In other words, It is a floater with...

Callable Reverse Ratchet Inverse Floater

Another name for the snow bear; a hybrid derivative instrument that is used by investors willing to bet on rising...

Callable Inverse Floating Rate Note

A floating rate note (FRN) in which the coupon is based on an inverse of a floating rate (capped and...