NISM Series IV: Currency Derivatives Certification Exam Notes

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  • Securitized Debt: Converts illiquid loans into tradable securities via a Special Purpose Vehicle (SPV).
  • Bond Maturity Classifications: Overnight, ultra-short-term, short-term (1-5 years), medium-term (5-12 years), long-term (>12 years).
  • Staggered Maturities: Bonds with varying maturity dates to manage issuer’s cash flow.
  • Plain Vanilla Bonds: Fixed coupon, redeemed at face value, simplest bond type.
  • Zero-Coupon Bonds (ZCBs): Issued at a discount, redeemed at face value, no periodic interest.

NISM Interest Rate Derivatives

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