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Cap Premium

The price that is charged by the seller of a cap in return for giving the cap buyer the right...

IO

The interest-only (OI) portion of a mortgage loan. Financial institutions, especially mortgage financing firms, separate a series of interest payment...

ASCOT

An abbreviation for asset swapped convertible option transaction; this structure combines both an option and an asset swap. In other...

Asset-Backed Credit Default Swap

A credit default swap on a mortgage-backed security or an asset-backed security. That means the reference obligation in such a...

As-You-Like Warrant

An option (or warrant) with an embedded provision giving the purchaser the right to designate it as either a call...

Parity Plus Basis

A part of the fair value of an option; an option value that includes, in addition to the intrinsic value,...

Interest Only

The interest-only portion of a mortgage loan. Financial institutions, especially mortgage financing firms, separate a series of interest payment from...

Pari Passu

A Latin phrase that means "on equal footing", "with equal pace", or "with equal step". Credit default swaps (CDSs) are...

Warehouse Receipts

Receipts for a commodity stored in a warehouse that guarantee the existence of this commodity and verify its availability and...

Interest Rate Cap Premium

The price that is charged by a interest rate cap seller in return for giving the cap buyer the right...