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Basket CLN

A credit linked note (CLN) in which the underlying is a portfolio or basket subject to credit risk. In other...

Bond Floor

A convertible’s bond floor, or bond value (also investment value), is the discounted value of its coupons and redemption value....

Floating Loan

A loan whose interest rate payments change over the life of the loan. Typically, the floating interest rate is tied...

Adjustable Rate Bond

A bond that has a floating rate interest- that is, an interest rate that adjusts periodically (monthly, quarterly, semi-annually, etc.)...

Variable Rate Bond

A bond that has a floating rate interest- that is, an interest rate that adjusts periodically (monthly, quarterly, semi-annually, etc.)...

Floating Rate Bond

A bond that has a floating rate interest- that is, an interest rate that adjusts periodically (monthly, quarterly, semi-annually, etc.)...

Straight Bond Value

The present value of future cash flows of a convertible bond as if it was a straight corporate bond, i.e.,...

Synthetic Structure

A financial structure whose building blocks are credit default swaps (CDSs) or, in the case of mortgages, asset-backed credit default...

Ability to Pay (Taxation)

A taxation principle which maintains that the amount of taxes should vary with the levels of wealth or income. That...

Ability to Pay

Broadly speaking, it is the borrower’s ability to fulfill current and future debt obligations by making timely principal and interest...