Tag: instruments
Participatory Notes
DefinitionParticipatory Notes commonly known as P-Notes or PNs are instruments issued by registered foreign institutional investors to overseas investors, who wish to invest in...
Call Option
DefinitionA call option, often simply labeled a "call", is a financial contract between two parties, the buyer and the seller of this type of...
Partially Convertible Debenture (PCD)
What is 'Partially Convertible Debenture - PCD' A type of convertible debenture, part of which will be redeemed by the issuing company...
Variable Rate Demand Note (VRDN)
What is 'Variable Rate Demand Note - VRDN' A debt instrument that represents borrowed funds that are payable on demand and accrue...
Fairway Bond
What is 'Fairway Bond' A type of bond that accrues interest if the embedded index or interest-rate option underlying the bond remains...
Generic Securities
What are generic securities and why are they important
Generic securities are financial instruments that are not tied to a specific company or asset. Instead,...
Take-Out Lender
What is 'Take-Out Lender' A type of financial institution that provides a long-term mortgage on property. This mortgage will replace interim financing,...
Warrant
What is a 'Warrant' A warrant is a derivative that confers the right, but not the obligation, to buy or sell a security – normally...
Underlying Option Security
What is an underlying option security
An underlying option security is a security that can be used as collateral for options contracts. The most common...
Ultra-Short Bond Fund
What is an Ultra-Short Bond Fund
Ultra-short bond funds are a type of fixed income mutual fund that invests in bonds with short-term maturities, typically...