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Rising-Coupon Bond

A bond with interest coupons that change to preset levels on specific dates. More specifically, the bond pays a given...

Risk-Off Asset

A category of assets that are supposedly safe or riskless. Examples of safe assets include US treasury bonds, currencies of...

Retractable Bond

A bond which is payable at par to its holder on demand once the lock-out or deferment period expires. This...

Inventory Shrinkage

The amount of inventory that is lost, stolen, or spoiled during some period of time. It is usually figured out...

Mono-Tranche CDO

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

MID

It stands for market index deposit; a certificate of deposit (CD) whose interest rate is tied to the performance of...

Market Index Deposit

A certificate of deposit (CD) whose interest rate is tied to the performance of a market index, such the S&P500,...

Imputed Interest

In connection with discount debt instruments, it is the interest that would be earned by holding an instrument to maturity....

Repo Collateral

The collateral (securities collateralized) that is posted by a borrower against the repo loan in the repo market. Repo collateral...

Laddering

An investment technique whereby investors (or portfolio managers) purchase multiple financial instruments/ products with different maturity dates ordered in a...