See Asset-Backed Security.
- ABS CDO
Instrument where tranches are created from the tranches of ABSs.
- Accrual Swap
An interest rate swap where interest on one side accrues only when a certain condition is met.
- Accrued Interest
The interest earned on a bond since the last coupon payment date.
- Adaptive Mesh Model
A model developed by Figlewski and Gao that grafts a high-resolution tree on to a low-resolution tree so that there is more detailed modeling of the asset price in critical regions.
- Agency Costs
Costs arising from a situation where the agent (e.g., manager) is not motivated to act in the best interests of the principal (e.g., shareholder).
- American Option
An option that can be exercised ...