Related Words

Stratified Sampling Bond Indexing: Dividing an index into cells, each representing a different characteristic of the index, such as duration or maturity.

Par Bond: A bond trading at its face value.

PAC Bond: Stands for Planned Amortization Class bond. A tranche class offered by some CMOs that has a sinking fund schedule and an ability to make principal payments that are not subordinated to other classes.

Passive Bond: A bond without any interest yield.

Payment-In-Kind (PIK) Bond: A bond that gives the issuer an option (during an initial period) either to make coupon payments in cash or in the form of additional bonds.

Peptide Bond: A covalent bond that links two amino acids together to form a polypeptide chain. A covalent bond between the amine end of one amino acid and the acid end of another amino acid.

Oversampling: A technique where each sample from a data converter is sampled more than once, i.e., oversampled. This multiplication of samples permits digital filtering of the signal, thus reducing the ne . . . View Full Definition

Performance Bond: A surety bond between two parties, insuring one party against loss if the terms of a contract are not fulfilled.

Optimization Approach To Indexing: An approach to indexing that seeks to optimize some objective, such as to maximize the portfolio yield, to maximize convexity, or to maximize expected total returns.

Municipal Bonds: Bonds issued to finance public improvements such as parks, schools and urban renewal projects.