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Soft Bullet

A bullet that pays no principal prior to a specified “targeted maturity date”. Thereafter, it pays monthly if the target…

Short Coupon

An interest payment (coupon) that covers a shorter period than the other coupons on a bond. For example, in a…

Soft Bullet Security

A bullet security that pays no principal prior to a specified “targeted maturity date”. Thereafter, it pays monthly if the…

Convertible

An instrument (part debt and part equity) that gives the holder the right, but not the obligation, to exchange a...

Commercial Paper

A written instrument that constitutes short-term obligations with maturities ranging from 2 to 270 days (however, most commercial paper (CP)...

Step-Up Security

A hybrid debt instrument (having the geatures of both debt and equity) that pays a fixed coupon or a specific…

Step-Up Puttable Security

A type of a step-up coupon security which gives the holder a put option at each step-up point over the…

Step-Down Puttable Security

A type of a step-down coupon security which gives the holder a put option at each step-down point over the…

Substitution Swap

A bond swap that enails swapping substitute bond issues experiencing short-tem imbalances in yield spreads. The imbalance will correct itself…

Static Spread

The spread that would be realized over the whole risk-free spot rate curve if a given risky security such as…