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Dedication

A fixed-income strategy that aims at buying new cash-generating assets so that their cash inflows will be used to match…

Designer CD

A certificate of deposit that offers an investor the choice to combine any desired maturity and deposit size to meet…

Capital Haircut

The amount of capital provision (haircut) that a bank or financial institution makes when booking a specific transaction so that...

Collared Floating-Rate Note

A floating-rate note (FRN) which has a minimum and a maximum interest rate, i.e., an embedded collar. This collar has…

Cash Bond Spread

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

Covered Bond

A type of debt-based derivative instrument that provides a much safer investment than asset-backed or mortgaged-backed securities. This bond is…

Cash Cow

A firm that generates cash in excess of what is needed to keep up its business or earning power. A…

Convertible Preferred Stock

A preferred stock that allows the holder to convert into common stock. It gives the holder a preference in the…

Clean Price of a Convertible

The price of a convertible as quoted exclusive of accrued interest. That is, the accrued coupon is not not part…

Brown Collateral Haircut

A reduction in the price of a brown collateral (below its market value) to penalize owners of such collateral and...