Coupon change type
Coupon change type is the method by which the coupon rate on a bond can change over time.
Combination
A combination coupon change type indicates that the bond has a combination of different coupon structures or features that may change over time. This type may involve a mix of fixed, floating or stepped coupon rates within the bond's terms.
Combo - Fixed/Floating
This coupon change type signifies that the bond has a combination of fixed and floating coupon rates. The coupon payments may switch between a fixed rate and a floating rate at specified intervals.
Combo - Floating/Fixed
In this case, the bond features a combination of floating and fixed coupon rates. The coupon payments may transition from a floating rate to a fixed rate or vice versa based on predetermined conditions.
Combo - Floating/Stepped
This coupon change type involves a combination of floating and stepped coupon rates. The coupon payments may change from a floating rate to a stepped rate, where the rate increases or decreases in predetermined steps.
Combo - Stepped/Floating
Similar to the previous type, this indicates a combination of stepped and floating coupon rates. The coupon payments may shift from a stepped rate to a floating rate over the bond's term.
Deferred interest
Bonds with deferred interest have coupon payments that are postponed or accumulated and paid at a later date. This type allows for the deferral of interest payments to a future period.
Fixed listing
Fixed listing refers to a bond with a fixed coupon rate that remains constant throughout the bond's term. The coupon rate does not change over time.
Fixed payment
Bonds with a fixed payment coupon change type have a predetermined fixed coupon rate that remains unchanged over the bond's life.
Floating rate
Bonds with a floating rate coupon change type have interest payments that adjust periodically based on a specified benchmark or index, such as LIBOR or the Treasury yield.
Non-interest-bearing
Non-interest-bearing bonds do not make regular interest payments. Instead, they are issued at a discount to face value and pay the full face value at maturity without periodic interest payments.
Overlap
Overlap indicates that there is an overlap or transition period between different coupon structures or rates within the bond's terms.
Step-Up/Down
Step-up/down bonds have coupon rates that increase or decrease at specified intervals over the bond's life.
Variable
Variable coupon change type indicates that the bond's coupon rate can vary based on specific criteria or market conditions.
Zero
Zero-coupon bonds do not make regular interest payments but are issued at a discount to face value and pay the full face value at maturity without periodic interest payments.
Other
This category may include unique or specialized coupon change structures that do not fit into the standard categories.