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Focused Range Accumulation Note

A structured note (and a type of range accumulation notes) that allows investors to particularly capitalize on their ability to…

Guaranteed Bond

A bond which is backed by a party other than the issuer. In other words, the bond’s interest and principal…

General Obligation Bond

A municipal bond in which interest and principal are backed by the full financial resources and creditworthiness of the issuing…

Gestation Repurchase Agreement

A reverse repurchase (repo) agreement by which a mortgage firm sells federally guaranteed mortgage-backed securities (MBSs) to a securities dealer…

High-Yield Financing

The process of raising funds by issuing unsecured low-grade, high-yield securities  (junk notes, junk bonds, etc.). This is usual at…

Death Spiral Debt

A type of convertible bond that can result in the creation of ever-increasing amounts of stock shares, driving the respective...

PIK Debenture

It stands for pay-in-kind debenture; a bond that confers on the issuer the option to pay interest with additional pay-in-kind...

Pay-In-Kind Debenture

A bond that confers on the issuer the option to pay interest with additional pay-in-kind (PIK) debentures (baby bonds) rather...

PAC Band

A PSA range within which the underlying mortgage collateral should remain over time so that a PAC bond would stick…

Specific Market Risk

A type of market risk (MR) that arises from narrowly-defined, or specific factors other than broad market dynamics/ movements. Specific...