Meaning COMPANION BONDS: A class of a Collateralized Mortgage Obligation (CMO) whose principal is paid off first when the underlying mortgages are prepaid due to falling interest rates. When interest rates rise, there will be lower prepayments of the principal; companion bonds therefore absorb most of the prepayment risk of a CMO
More terms such as Companion bonds in Dictionary C.
- Definition COMEX:
- Examples A division of the New York Mercantile Exchange (NYMEX). Formerly known as the Commodity Exchange, COMEX is the leading U.S. market for metals futures and options trading companion bonds definition.
- Definition Current Yield:
- Examples For bonds or notes, the coupon rate divided by the market price of the bond companion bonds explain.
- Definition Call Protection:
- Examples A feature of some callable bonds that establishes an initial period when the bonds may not be called companion bonds what is.
- Definition Closing Purchase:
- Examples A transaction in which the purchaser's intention is to reduce or eliminate a short position in a stock, or in a given series of options companion bonds meaning.
- Definition Cash On Delivery (COD):
- Examples In the context of securities, this refers to the practice of institutional investors paying the full purchase price for securities in cash companion bonds abbreviation.
