INVERSE FLOATER
A bond or other debt security with an inverse relationship to a benchmark rate. It modifies its coupon payment to the changes in the interest rate. When the interest rate increases, the coupon payment rate decreases because the interest rate is subtracted from the coupon payment. A higher interest rate denotes more is deducted, hence less is given to the holder. A ratio of the interest rate can also be utilized instead of one to one relationship. Also called inverse floating rate note.
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Shogun Bond
Shogun Bond is also referred to as ‘geisha bonds’. It is kind of foreign-currency denominated bond. It is issued by foreign entities in ...
Ambulance Chaser
A term for lawyers who rush contact persons involved in an accidents. It is often use to increase the payments to the victims. Insurance companies ...
Core Deposits
Deposits in a bank’s general market area. Banks depend on core deposits to stabilize their funds for their lending base. Such deposits offer ...
Nominalism
Nominalism is the principle of keeping the amount of a debt obligation fixed in spite of fluctuations the purchasing power or exchange rate of mone ...
Insured Bond
Bond with interest and principal payments guaranteed by a private insurance company. Usually, insured bonds are seen as a feature of municipal bond ...
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| 14:30 | NY Fed Empire State manufacturing index | Jun |
