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Tranche Spread

A fraction of the total collateral pool (pool of underlying collateral in a securitized structure). It represents the amount of...

Floating Rate On Governments

A floating-rate note (FRN or floater) in which coupons are reset quarterly or semi-annually to the coupon on the newly…

ERC

It stands for event risk covenant; a bond provision that requires that the bond is turned in, or redeemed, at…

Final Dividend

The last dividend that is paid after the end of a company’s financial year. This dividend is declared at the…

Pyramid Scheme

An investment fraud that involves the payment of purported returns to original “investors” (the scheme organizers) or early entrants from...

Gestation RP

A reverse repurchase (RP) agreement by which a mortgage firm sells federally guaranteed mortgage-backed securities (MBSs) to a securities dealer…

Equivalent Securities

A replacement for collateralized securities that is identical in terms of type, nominal value, description and amount to the ones…

Extendible Bond

A bond that pays a rate of interest higher than an otherwise identical fixed-rate, bullet maturity bond, with the issuer…

Ex Capitalization

It refers to shares bought in a private company that do not entitle their holders to current scrip issues. In…

Election Warrant

A warrant whose ultimate payoff or redemption value is likely to be determined based on the results of an election.…