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Lemon

An investment that is performing bad or not performing as expected. An example of a lemon is a promising stock…

LTLSS Tranche

A leveraged super senior tranche (LSS tranche) (a synthetic collateralized tranche) that is associated with a loss trigger. More specifically,...

Loss Spiral

A type of liquidity spiral that arises for leveraged entities/ investors. A loss spiral forms when assets decline in value,...

DL Bond

It stands for drop lock bond; a floating-rate bond that converts into a fixed coupon obligation when a reference interest…

Drop Lock Note

A floating rate note that converts into a fixed coupon obligation when a reference interest rate (or index) is traded…

Demand Deposit

A bank account (a type of checking account) that allows its holder to withdraw from deposited funds on demand, i.e.…

Doubling Option

A provision in specific types of indentures which grants the issuer the right to retire twice as many bonds as…

Reference Asset

A sovereign or highly-rated debt instrument or an equity index price that is used to provide a basis for a...

Mortgage Bond

A bond in which interest and principal payments are made by home owners. Typically, it is issued by a corporate...

Duration Shortening Swap

A bond swap that involves swapping a long maturity bond with a shorter maturity bond. This swap helps investors to...