Fixed Income Flashcards
What is the credit spread risk?
The risk that the default risk premium on a bond can increase.
What is a callable bond?
It is a bond that the issuer may redeem before it matures.
What is a puttable bond？
It is a bond instrument that allows the bondholder to force the issuer to repurchase the security at specified dates before maturity.
What is the portfolio duration
It is an approximation of the price sensitivity of a portfolio to parallel shifts of the yield curve.
What is the interpolated spreads?
Spreads to swaps.
What are covered bonds?
An obligation of the corporation that issues them, but their interest and principal payments are provided by a pool of assets that are legally recognized as bankruptcy remote.
What are securitized bonds?
Those are the bonds issued by a special purpose entity to which the underlying assets are sold.
