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A banking term that describes a loan in which the principal is repaid in a single transaction upon maturity of the instrument.

A London-based trade association that deals with matters of common interest to member banks. The BBA documentation can be used for swaps and forward rate agreements.

As the term is used in swap finance, an iterative numerical procedure to determine the implied spot yield curve from the conventional yield curve.

1) Market slang that means that a transaction giving rise to a position is recorded among the institution’s assets and/or liabilities. 2) Market slang that refers to an institution’s portfolio of some specific asset type such as a “swap book,” a “foreign exchange book,” and an “options book.”

Also known as the coupon equivalent yield. A method of calculating and stating the yield on a coupon bearing instrument. Most often assumes semiannual compounding.

When a municipality or local government requires short term funding in anticipation of issuing longer dated notes/bonds.

A marketable debt obligation of an issuer. Issuers are governments, agencies and corporates.

The Federal Reserve’s governing body.

Also known as all-or-nothing options, digital options and Bet options. Options that pay a fixed amount of cash if they expire in the money, no matter how deeply, otherwise nothing.

Treasury bills or T-bills as they are known in the market, are short-term, discounted government securities issued for one year or less. T-bills are extremely liquid.

Also called bid-asked spread. The difference between the bid price and the asked price for any marketed instrument. In dealer markets, the bid-asked spread is one source of the dealer’s income.

The price that a buyer is willing to pay for a security. In regard to the bid-ask spread, it is the left side of the quote and is the price at which the buyer of the security is offering to buy.