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CLN

It stands for credit-linked note. A credit-linked hybrid that combines a note with a credit default swap. The face value…

Callable CB Asset Swap

An asset swap which has a callable convertible bond (CB) as underlying. The underlying convertible bond is associated with a…

Convertible Asset Swap Transaction

A par asset swap whose underlying asset (e.g. a convertible bond) is repackaged with an equity warrant stripped therefrom, with…

Fiduciary Call

A capital-preserving tactic that is constructed by buying a European call option and a risk-free bond maturing on the option…

Fiduciary Put

An option trading strategy whereby a put option is sold, with the proceeds (the aggregate exercise price) being invested in…

Fraption

An option on a forward rate agreement (FRA) that gives the holder the right, without the obligation, to buy an…

Forward Vol Agreement

An agreement that a seller and a buyer enter into in order to exchange a straddle option at a specific expiration…

Fixed-To-Floating Interest Rate Swap

A basic interest rate swap whereby a fixed rate is paid for a floating rate in the same currency. In...

Conversion

Changing a call option into a put option or vice versa. In the former case, an investor buys the call,...

Trade Option

A commodity option transaction where the buyer is reasonably viewed by the seller (option writer) to be an end user...