Bond Risks
Bond Acroynms
Timeless Songs - Name the Artist
Bond Tidbits
Bloomberg Functions
100
Another name for interest rate risk.
What is duration?
100
CDO
What is Collateralized Debt Obligation?
100
Livin' on a Prayer
Who is Bon Jovi?
100
Yield spread in basis points above an interpolated government yield of a similar remaining maturity.
What is G-spread?
100
FA
What is Financial Analysis
200
This risk is largely associated with municipal bonds.
What is tax risk?
200
FRN
What is a floating rate note?
200
Its the Final Countdown
What is Europe?
200
Lowest investment grade credit rating for Fitch.
What is BBB-?
200
DES
What is Security Description
300
This risk would be unique to a bond denominated in EUR (from a US investor's perspective).
What is foreign exchange (currency) risk?
300
3mL
What is 3 month LIBOR
300
Don't Stop Believing
Who is Journey?
300
A small subset of corporate bonds that have par values of $25.
What is baby bonds.
300
CRPR
What is Credit Profile
400
The risk of loss resulting from a borrower failing to make full and timely payments of interest and/or principal.
What is credit risk?
400
SPV
What is a special purpose vehicle?
400
"Hands touching hands, reaching out, touching me, touching you...."
Who is Neil Diamond?
400
This government owned corporation guarantees residential mortgage-backed securities.
What is Ginnie Mae?
400
QR
What is Quote Recap
500
The risk (unique to MBS) that when interest rates decline, the security will have a shorter maturity than was anticipated because homeowners refinance at lower (market) interest rates.
What is contraction risk?
500
CoCo
What is contingent capital (convertible) security?
500
'"....do you remember when, we used to sing....sha la la la la la la la la la la dee dah"
Who is Van Morrison?
500
Minimum issuance size for a bond to be considered for inclusion in the Barclays US Aggregate Index.
What is $250 million?
500
YAS
What is Yield and Spread Analysis?
M
e
n
u