Business, Legal & Accounting Glossary
CPPI. A type of security derivative that creates exposure to an investment while reducing the risk and guaranteeing invested capital. CPPI is created through the purchase of a zero-coupon bond, with the cash proceeds being leveraged. A bond floor is set for the CPPI so that cash flows can be paid, hence guaranteed invested capital.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Constant Proportion Portfolio Insurance are sourced/syndicated and enhanced from:
This glossary post was last updated: 20th November, 2021 | 0 Views.