turboing

CFA Level I Fixed Income
#1

Hello Everyone,

What is Turboing?

Thanks

#2

It’s adding to the engine of your car a fuel/air mixture compressor that is designed as a turbine run by the exhaust gasses produced by the engine.

It makes you go fast.

#3

Thanks Ya I know in this context but in finance what this word implied?

Turboing : Excess spread (CF from asset used to secure - interest to bondholder) depoisted in a reserve and helps to retire bond principal by issuer.

#4

from your definition, it sounds more like you are refering to a “sinking fund” which is used to retire a bond.

#5

http://en.wikipedia.org/wiki/Turbo_warrant

http://en.wikipedia.org/wiki/Barrier_option

#6

Hi Magician,

Ya different term with more or less meaning thats why I am confused.

I have came across this word in that section of CFA curriculam only.

Thanks

#7

Thanks for the link