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Deal Step-Down Provision

n the context of subprime deals, it is a provision that entails the conversion of deal structure from sequential pay...

Zero-Coupon Convertible

A convertible that comes with no annual coupon, but rather it is issued at a deep discount to par. In...

Accrual Tranche

The last tranche in a collateralized mortgage obligation (CMO). Periodic interest accrues on an accrual tranche but no cash payments...

Mandatorily Redeemable Preferred Stock

A preferred stock that is subject to mandatory redemption. More specifically, it contains terms requiring the issuer to recall the…

Low Coupon Bond

A bond that pays small coupons over its life, but requires a large payment of principal atmaturity. This bond, therefore, allows…

LTLSS Note

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

Low Rate Bond

A bond that pays a small interest rate over its life, but requires a large payment of principal at maturity.…

Redeemable Nonconvertible Preferred Stock

A redeemable preferred stock that which doesn't allow the investor (holder) to convert into common stock. However, the issuer has...

Latent Put Option

An option (latent option) that gives the holder the right to put a convertible bond or convertible preferred stock to...

Note of Hand

Another name for a promissory note, which is a written promise whereby the maker (issuer, payor, obligor, or promisor) unconditionally...