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Definition of Comanger
A bank that ranks just below a lead manager in a syndicated Eurocredit or international bond
A bond on which interest accrues, but is not paid to the investor during the time of accrual.
Publicly traded issues that may be collateralized by mortgages and MBSs.
The net present value analysis of an asset if financed solely by equity
IRS rules used to allocate income on export sales to a foreign sales corporation.
A form of organization commonly used by foreign banks to enter the U.S. market. An agency
Variations of mortgage instruments such as adjustable-rate and variablerate
An alternative model to the capital asset pricing model developed by
Yield curve option-pricing models.
A model for determining the required rate of return on an asset.
A model, such as the Capital Asset pricing Model (CAPM), that determines the required
Notes issued by states and municipalities to obtain interim financing for
The time that elapses between when a check is deposited into a bank account and when the funds are available to the depositor, during which period the bank is collecting payment from the payer's bank.
A convention used for quoting bids and offers for treasury bills in terms of annualized
A draft addressed to a bank.
Line of credit granted by a bank to a customer.
A computer message system linking major banks. It is used not for effecting payments, but as a
A short-term credit investment created by a non-financial firm and guaranteed by a
Bank for International Settlements (BIS)
An international bank headquartered in Basel, Switzerland, which
State of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from
Bankruptcy cost view
The argument that expected indirect and direct bankruptcy costs offset the other
The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk.
The argument that expected bankruptcy costs preclude firms from being financed entirely
bonds that are not registered on the books of the issuer. Such bonds are held in physical form by
Also called on-the-run or current coupon issues or bellwether issues. In the secondary
Binomial option pricing model
An option pricing model in which the underlying asset can take on only two
Black-Scholes option-pricing model
A model for pricing call options based on arbitrage arguments that uses
bonds are debt and are issued for a period of more than one year. The U.S. government, local
A contract for privately placed debt.
A contractual provision in a bond indenture. A positive covenant requires certain actions, and
Bond equivalent yield
bond yield calculated on an annual percentage rate method. Differs from annual
The contract that sets forth the promises of a corporate bond issuer and the rights of
Designing a portfolio so that its performance will match the performance of some bond index.
A conventional unit of measure for bond prices set at $10 and equivalent to 1% of the $100 face
With respect to convertible bonds, the value the security would have if it were not convertible
The method used for computing the bond-equivalent yield.
The annualized yield to maturity computed by doubling the semiannual yield.
A system that monitors and evaluates the performance of a fixed-income portfolio , as well as the
bonds issued by emerging countries under a debt reduction plan.
bond whose principal repayment is linked to the price of another security. The bonds are
Foreign bond issue made in London.
Capital asset pricing model (CAPM)
An economic theory that describes the relationship between risk and
Cheapest to deliver issue
The acceptable Treasury security with the highest implied repo rate; the rate that a
Clearing House Interbank Payments System (CHIPS)
An international wire transfer system for high-value
Collateral trust bonds
A bond in which the issuer (often a holding company) grants investors a lien on
Insurance that a construction contract will be successfully completed.
Conflict between bondholders and stockholders
These two groups may have interests in a corporation that
A merchant banking subsidiary set up by several banks that may or may not be of the
bonds that can be converted into common stock at the option of the holder.
A eurobond that can be converted into another asset, often through exercise of
Debt obligations issued by corporations.
Cumulative Translation Adjustment (CTA) account
An entry in a translated balance sheet in which gains
In Treasury securities, the most recently auctioned issue. Trading is more active in current
Related: Benchmark issues
High-coupon bonds that sell at only at a moderate premium because they are callable at a
An unsecured bond whose holder has the claim of a general creditor on all assets of the
An asset requiring fixed dollar payments, such as a government or corporate bond.
A bond issued with a very low coupon or no coupon and selling at a price far below par
The asset in a forward contract that will be delivered in the future at an agree-upon price.
Contracts such as options and futures whose price is derived from the price of the
Debt sold for less than its principal value. If a discount bond pays no interest, it is called a
Municipal revenue bonds for which quotes are given in dollar prices. Not to be confused with
Dollar price of a bond
Percentage of face value at which a bond is quoted.
Domestic International Sales Corporation (DISC)
A U.S. corporation that receives a tax incentive for
Eurobonds that pay coupon interest in one currency but pay the principal in a different
Eligible bankers' acceptances
In the BA market, an acceptance may be referred to as eligible because it is
Equivalent bond yield
Annual yield on a short-term, non-interest bearing security calculated so as to be
A bank that regularly accepts foreign currency denominated deposits and makes foreign currency loans.
A bond that is (1) underwritten by an international syndicate, (2) offered at issuance
Intermediate-term loans of Eurocurrencies made by banking syndicates to corporate and
Eurobonds denominated in U.S.dollars.
Securities sold in the Euromarket. That is, securities initially sold to investors
Eurobonds denominated in Japanese yen.
Export-Import Bank (Ex-Im Bank)
The U.S. federal government agency that extends trade credits to U.S.
bond whose maturity can be extended at the option of the lender or issuer.
Federal Financing Bank
A federal institution that lends to a wide array of federal credit agencies funds it
Federal Home Loan Banks
The institutions that regulate and lend to savings and loan associations. The
Assets that pay a fixed-dollar amount, such as bonds and preferred stock.
Government bonds that are acceptable at par in payment of federal estate taxes when owned by
Foreign banking market
That portion of domestic bank loans supplied to foreigners for use abroad.
A bond issued on the domestic capital market of anther company.
Foreign bond market
That portion of the domestic bond market that represents issues floated by foreign
Full coupon bond
A bond with a coupon equal to the going market rate, thereby, the bond is selling at par.
Garmen-Kohlhagen option pricing model
A widely used model for pricing foreign currency options.
General obligation bonds
Municipal securities secured by the issuer's pledge of its full faith, credit, and
bonds that are designed so as to qualify for immediate trading in any domestic capital market
See: Government securities.
Group rotation manager
A top-down manager who infers the phases of the business cycle and allocates
A money manager who seeks to buy stocks that are typically selling at relatively high P/E
High-coupon bond refunding
Refunding of a high-coupon bond with a new, lower coupon bond.
A bond on which the payment of interest is contingent on sufficient earnings. These bonds are
bond whose payments are linked to an index, e.g. the consumer price index.
Industrial revenue bond (IRB)
bond issued by local government agencies on behalf of corporations.
Financial securities, such as money market instruments or capital market insturments.
A municipal bond backed both by the credit of the municipal issuer and by commercial
International Bank for Reconstruction and Development - IBRD or World Bank
international bank for Reconstruction and Development makes loans at nearly conventional terms to countries for projects of high
International Banking Facility (IBF)
international banking Facility. A branch that an American bank
A collective term that refers to global bonds, Eurobonds, and foreign bonds.
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