Structured arbitrage transaction

Definition:

A self-funding, self-hedged series of transactions that usually use mortgage-backed securities (MBS), commercial mortgage backed securities, and collateralized debt obligations as the primary assets.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Funding

Used to describe the refinancing of a debt prior to its maturity (the same as refunding). In corporate finance refers to the floating of bonds to raise finance and levels of capital. See also:... Read More

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