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Z Bond - An accrual tranche of a collateralized mortgage
obligation where the final segments are paid off.
Z Score Analysis - A measure of company failure or bankruptcy.
Zero Balance Account - A checking account where zero balance is
maintained by the transfer of funds from alternative accounts in amounts
only large enough to cover checks written.
Zero Basis Risk Swap - A swap between a municipality which pays a fixed
rate and a financial intermediary which pays a floating rate exactly
equal to the floating rate requirement on the municipality's floating
rate debt.
Zero Beta Portfolio - A portfolio having a beta of zero, or having zero
systematic risk.
Zero Cost Collar - A collar with equal premiums on the cap and floor.
Zero Cost Option - An option position in which the premium from an
option sold pays the premium of an option purchased.
Zero Coupon Accrual Note - A note with an initial price below par, zero
coupon rate and a supplementary interest accrual determined by an
embedded range accumulation option feature.
Zero Coupon Bond - A bond in which both the principal and the interest
are paid at the date of maturity instead of periodically over the life
of the bond.
Zero Coupon Convertible Debt - Convertible bonds that may be put to the
issuer during the early years of their lives and are convertible into
the issuer's common stock on terms calculated to provide less return and
risk than the risk/return on common stock with significantly reduced
risk.
Zero Coupon Currency Swap - A currency exchange agreement in the form of
a swap agreement with cash settlement at maturity.
Zero Coupon Swap - An interest rate swap agreement with the fixed rate
side based on a zero coupon bond.
Zero Premium Option - Any combination option without the explicit
payment or receipt of a net premium by either party to the contract.
Zero Premium Risk Reversal - Risk management strategy in which the
premium taken from the sale of a call is designed to exactly match the
cost of a put purchased.
Zero Strike Price Options - Cash settled options with an exercise price
close to or at zero, traded on exchanges in countries where there is an
obstacle to the transfer of stock.
Zero Sum Game - A situation where an individual can only gain at the
expense of another.
Zero-Investment Portfolio - A portfolio having zero net value created by
buying and shorting component securities.
Zero-Minus Tick - Sale price of an equity which is equal to the price of
the last sale but lower than the last different price.
Zero-Plus Tick - Sale price of an equity which is equal to the price of
the last sale but higher than the last different price.
Zillmerising - An alteration in the actuarial value of a long-term
insurance policy to cover the cost of acquiring new business over a
period of time.
Zombie Bond - A highly speculative bond once believed to be a lifeless
issue that shows new signs of life. |
