NISM Series IV: Currency Derivatives Certification Exam Notes

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  • Puttable Bonds: Investor can redeem early, often at a discount when rates rise.
  • Secured Debt: Backed by collateral, paid first in liquidation, higher recovery rate.
  • Unsecured Debt: No specific collateral, paid after secured debt in liquidation.
  • Subordinated Debt: Riskier, paid before equity in liquidation, used for bank Tier II capital.
  • Credit Enhanced Bonds: Improve creditworthiness via collateral, insurance, or guarantees.

NISM Interest Rate Derivatives

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