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Warrant-Linked Bond

A bond that carries fixed coupon (interest payment) and the right (embodied in a warrant) entitling the bearer of the...

Hybrid Financial Instrument

A financial instrument that combines multiple elements or components of different, distinguishing features, particularly debt-type (debt instrument) and equity-type (equity...

Insolvency

A financial difficulty (mainly related to cash flows) that renders an entity (or a natural person) unable to meet debt...

Bankruptcy

In general, it refers to the state of a person (natural or legal) being unable to pay the debts it...

Liability Dividend

A dividend that is paid with some form of debt such as bond, rather than cash or stock. Sometimes, companies…

Latent Call Option

An option (latent option) that gives the issuer of a convertible bond or convertible preferred stock the right to redeem…

Loss-Triggered Leveraged Super Senior Tranche

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

Low Coupon Bond

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

ECN

It stands for enhanced capital note; a capital note that is issued by a regulated institution (e.g., a bank) with...

Enhanced Capital Note

A capital note that is issued by a regulated institution (e.g., a bank) with the enhanced feature of "automatic convertibility"...