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Callable Barrier Reverse Convertible

A variant of barrier reverse convertible (BRC)- a structured product– that pays a guaranteed coupon over the specified term or…

Callable at a Premium

In the context of bonds (specifically bond indentures), this refers to a term providing for a premium to par value…

Planned Amortization Class Tranche

A tranche (constituting a type of asset-backed security, ABS) that gives the investors more certain cash flows thanks to its...

Credit Switch

The process whreby a portfolio manager buys credit protection on one reference asset or pool of assets, and simultaneously sells protection…

Convertible Price

The quoted price of a convertible bond which is normally expressed as a percentage of the bond’s nominal value (par…

PAC Tranche

It stands for planned amortization class tranche; a tranche (constituting a type of asset-backed security, ABS) that gives the investors...

Bear Trap

A practice whereby bearish investors (bears) accumulate shares being sold short in an attempt to drive down share prices. The...

CODI

An abbreviation for certificates of deposit index, which is by definition an index that measures the 12-month average of the...

Collateral Trust Bond

A bond that gives its holder a claim against financial asset (i.e., securities) rather than against real or physical assets.…

Convertible Risk Premium

The excess of the market price of the convertible over its bond value (bond floor). It is typically expressed as…