Non-Marketable Security: Definition, Examples, Vs. Marketable

Non-Marketable Security: Definition A non-marketable security refers to a financial instrument that cannot be easily bought or sold in the secondary market. Unlike marketable securities, which can be traded on exchanges or over-the-counter markets, non-marketable securities have limited liquidity and are typically held until maturity. One of the main characteristics …

Fixed Income Clearing Corporation (FICC): A Brief History

Introduction The Fixed Income Clearing Corporation (FICC) is a financial institution that plays a crucial role in the fixed income trading market. Established in 2003, the FICC provides clearing, settlement, and risk management services for fixed income transactions. Background Prior to the establishment of the FICC, the fixed income market …

Equity-Linked Note (ELN) – Definition and Features

What is an Equity-Linked Note (ELN)? An Equity-Linked Note (ELN) is a type of financial instrument that combines features of both fixed income securities and equity derivatives. It is a debt instrument issued by a financial institution, typically a bank, that offers investors the opportunity to participate in the performance …

Asset-Backed Commercial Paper: Definition and Uses

What is Asset-Backed Commercial Paper? Asset-Backed Commercial Paper (ABCP) is a short-term debt instrument that is backed by a pool of underlying assets. It is typically issued by special purpose vehicles (SPVs) or financial institutions to raise funds for specific purposes. Definition and Explanation ABCP is a type of commercial …