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Callable Fixed-Rate Note

A callable note that pays a fixed rate coupon for its entire tenor. It allows the issuer to early terminate (premature or early termination)...

Delta-1 Product

A financial product (derivative) that tracks the performance of an underlying asset on a one-to-one basis. In other words, if...

Omicron

With respect to a convertible bond, it is the change in the bond price resulted from a single basis point increase in the...

DRC

In connection with convertibles, it stands for discount reverse convertible; a reverse convertible which consists of a zero-coupon bond (discount bond) and a...

Discount Reverse Convertible

A reverse convertible which consists of a zero-coupon bond (discount bond) and a plain vanilla put option. The investor issues the put option (short put)...

Credit DV01

With respect to a convertible bond, it is the change in the bond price resulted from a single basis point increase in the credit spread. In...

Reset Bond

A bond which is typically issued with a special provision allowing the initial interest to be reset on specified dates so...

Adjusted Duration

Another term for modified duration; a tool that is used to measure the change in the value of a financial...

Step-Coupon Bond

A bond which is typically issued with a special provision allowing the initial interest to be reset on specified dates so that...

Bond

A debt security that represents an amount of money owed by the bond issuer to a bondholder. The issuer is...