A tranche that has a big width. In other words, the the difference between its exhaustion percentage (detachment point) and...
A tranche that has a small width. In other words, the the difference between its exhaustion percentage (detachment point) and...
The difference between the exhaustion percentage (detachment point) and the attachment percentage (attachment point). It represents the percentage of capital...
A fungible, negotiable instrument that represents a financial value, and is categorized into equity securities, debt securities, and derivative contracts.…
A CMO tranche in which the monthly coupon rate is typically set equal to a reference rate such as LIBOR.…
It stands for forward-starting CDO; a single-tranche CDO (an exotic CDO product) with a premium starting at a pre-specified time…
A repo rate that communicates the market participants’ economic expectations. Put another way, it is a forward rate that reflects…
An index-linked product (an index-linked note or bond) that is denominated and interest-payable in one currency whilst its redemption value...
The spread that relates to the tranche of a CDO (collateralized debt obligation), in a securitized structure. The CDO tranche...
A loan for which a borrower is not required to pay any interest. However, a borrower will have to repay...