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ZCC

An abbreviation for zero-coupon convertible; a convertible that comes with no annual coupon, but rather it is issued at a...

ZBA

It stands for zero-balance account; a corporate checking account in which a zero balance is maintained. Differently put, this constitutes...

CDO

An abbreviation for collateralized debt obligation; a debt security that is collateralized (i.e., backed) by various types of debt obligations...

Bespoke CDO

A synthetic structure that consists of a single tranche. It is simpler than a standard synthetic tranche and can be...

LSS Tranche

It stands for leveraged super senior tranche; a super-senior tranche in which only a part of the tranche notional is...

TAC

It stands for targeted amortization class; a type of bond class that has a schedule for repayment of principal which...

PAC Bond

Planned amortization class bond; a tranche of a collateralized mortgage obligation (CMO) that converts a long-term mortgage product with irregular...

PAC Drift

A phenomenon that arises when a planned amortization class (PAC) schedule is not met even if prepayments on the collateral...

NSJ Bond

It stands for non-sticky jump bond; a collateralized mortgage obligation that may change priority to receive principal if certain conditions...

CoCo Reverse Convertible

It stands for contingent coupon reverse convertible; a reverse convertible in which the coupon is made contingent on a specific...