A convertible bond that comes with a carrot-and-stick provision. Differently stated, its carrot provision provides for a low conversion premium…
A floater that involves a short position in a strip of caps over the life of collateralized motgage obligation (CMO)…
The risk that arises during periods of rising interest rates when borrowers tend to pay off their loans later than...
For an asset, cash equivalent value (CEV) is a measure of revenue that a firm receives from customers. More specifically,...
The risk that a borrower will fail to make a balloon or lump-sum payment at maturity. Balloon risk may arise...
An interest-only tranche (IO tranche) whose cashflows are “stripped” from the excess interest derived from senior and subordinate classes of...
It stands for levered interest only; an interest-only tranche (IO tranche) whose cashflows are “stripped” from the excess interest derived...
The replacement of physical certificates of financial securities with an all-electronic system in which electronic signals or bits are assigned...
A tranche that comes with the lowest priority amongst the entire set of tranches constituting a securitized structure (CMBS structure,...
It stands for first-loss piece or first-loss position; a tranche that comes with the lowest priority amongst the entire set...