Common Acronyms & Abbreviations Used in Structured Finance

  • ABC Securities — Asset-Backed Capital Commitment Securities
  • ABCDS — Credit Default Swap on an Asset-Backed Security (aka ABS CDS)
  • ABCP — Asset-Backed Commercial Paper
  • ABS — Asset-Backed Security
  • ABSCDO — Collateralized Debt Obligation of Asset-Backed Securities
  • ABX — Markit's Index of ABCDSs on Home Equity ABS
  • AFC — Available Funds Cap
  • ARPS — Auction-Rate Preferred Stock
  • ARS — Auction-Rate Securities
  • AXXX Securities — ILNs Backed by Regulation AXXX life insurance reserves
  • BIS — Bank for International Settlements
  • C/E — Credit Enhancement
  • CDO — Collateralized Debt Obligation
  • CDPC — Credit Derivatives Product Company
  • CDS — Credit Default Swap
  • CDX.HY — Markit's Index of CDSs on High-Yield Debt
  • CDX.IG — Markit's Index of CDSs on Investment-Grade Debt
  • CDX.XO — Markit's Index of CDSs on Debt Issued by Cross-Over Firms
  • CFO — Collateralized Fund Obligation (ie, securitized hedge fund and private equity interests)
  • CLN — Credit-Linked Note
  • CLO — Collateralized Loan Obligation
  • CLOCS® — Committed Long-Term Capital Securities (Swiss Re)
  • CMBS — Commercial Mortgage-Backed Security
  • CMBX — Markit's Index of ABCDSs on Commercial Mortgage-Backed Securities
  • CP — Commercial Paper
  • CPS Securities — Committed Preferred Custodial Trust Securities
  • CPDO — Constant Proportion Debt Obligation
  • CPPI — Constant Proportion Portfolio Insurance
  • CSO — Collateralized Synthetic Obligation (aka SCDO)
  • CSP — Collateralized Swap Program
  • DPC — Derivative Product Company
  • DSCR — Debt Service Coverage Ratio
  • HEL — Home Equity Loan
  • HELOC — Home Equity Line of Credit
  • I/C — Interest Coverage
  • ILS — Insurance-Linked Security
  • ISDA — International Swaps and Derivatives Association
  • LCDS — Loan Credit Default Swap
  • LCDX — Markit's Index of LCDSs on Senior Syndicated Leveraged Loans
  • LSSN — Leveraged Super-Senior Note
  • MBS — Mortgage-Backed Security
  • MTN — Medium-Term Note
  • O/C — Over-Collateralization
  • PAUG — Pay-As-You-Go
  • RMBS — Residential Mortgage-Backed Security
  • SCDO — Synthetic Collateralized Debt Obligation (aka CSO)
  • SFOC — Structured Financial Operating Company
  • SIV — Structured Investment Vehicle
  • SPC — Special Purpose Company
  • SPE — Special Purpose Entity (aka SPV)
  • SPV — Special Purpose Vehicle (aka SPE)
  • STCSO — Single-Tranche Collateralized Synthetic Obligation (aka STSCDO)
  • STSCDO — Single-Tranche Synthetic Collateralized Debt Obligation (aka STCSO)
  • TABX — Markit's Tranched ABX index
  • TOB — Tender-Offer Bond
  • TruPS — Trust-Preferred Stock
  • TRR CLO — Total Rate of Return Collateralized Loan Obligation
  • TRS — Total Return Swap
  • VaR — Value at Risk
  • VRDN — Variable-Rate Demand Note
  • VRDO — Variable-Rate Demand Obligation
  • XXX Securities — ILNs Backed by Regulation XXX life insurance reserves