What is a collateralized debt obligation (CDO)?
A tranched ABS issued by a special purpose vehicle (SPV) that is backed by a pool of receivables structured into multiple tranches, each having different rights over the portfolio...
What is a certificate of deposit (CD)?
A negotiable unsecured money market instrument issued by a bank evidencing a time (term) deposit with that bank, typically in book-entry form, usually at a fixed rate, with a matur...
What is a bond’s invoice price?
When buying a bond, all interest that has accrued since its last interest payment is added to the dealer’s ask price and received by the buyer at the next interest payment date. A...
A bond is any capital market debt instrument. Bonds are generally categorized according to their issuer as government bonds, agencies (national government agencies and government-...
What is a banker’s acceptance (BA)?
A banker’s acceptance (BA) is a negotiable short-term high quality straight discount money market instrument in the form of a time draft authorized under a letter of credit drawn o...
A warrant (WT) is a security granting its holder the right to buy (call) or sell (put) a specific amount of an underlying asset either of the instrument’s issuer or of a 3rd-party,...
Voting rights are the rights of shareholders to vote on corporate matters. While any class of equity entitling its holders to vote is voting stock, generally only common stock has...
What are US “Treasury zeros” (STRIPS)?
Zero-coupon notes and bonds are not issued by the US Treasury. Instead, “Treasury zeros” are created by financial institutions and government securities brokers and dealers throug...
A US Treasury security (Treasury) is a government debt security issued and backed by the full faith and credit of the US government, including Treasury bills, notes, bonds, floatin...
What are Treasury inflation-protected securities (TIPS)?
Treasury inflation-protected securities (TIPS) are US Treasury notes and bonds that pay a fixed rate of semiannual interest over their life on their principal value adjusted for ch...
