Typically, an interest rate swap whose fixed rate payment substantially deviates from currently prevailing coupon rates on debt instruments with...
A derivative instrument which is traded and privately negotiated in over-the-counter markets, i.e. directly between the two parties involved, without...
It stands for exchange-traded derivative; a derivative instrument that is traded via organized derivatives exchanges, i.e. where traders buy and...
A collared FRN in which the caplet/ floorlet strikes increase at particular intervals/ increments (and hence the ratchet feature). The...
A swap which allows one of the counterparties to participate in favorable movements in the underlying rate/price, while giving that...
A forward contract which is enhanced with an embedded floor to protect the holder from substantially adverse price movements in...
A derivative or fixed-income security which features high convexity, i.e., its sensitivity changes with the passage of time or with...
An option-related instrument or fixed-income security which features low or no convexity, i.e., its sensitivity changes with the passage of...
The processes undertaken by a specialized corporation, called a clearinghouse, in order to facilitate securities transactions. That includes: validation, delivery...
An at-the-money option, that is, an option which has a strike price equivalent or approximately equal to the underlying asset's...