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Home Categories Fixed Income Trading Increasing discount refers to an increase in the value of a discount security as it approaches its maturity date. Asset-backed commercial paper (ABCP) is a type of short-term investment with a maturity of 270 days or less. Average life is the average length of time it takes to pay off the outstanding principal on a debt instrument, such as a treasury bill, bond, loan, or mortgage-backed security. Barbell is a portfolio strategy with a fixed income, in which half of the investments are short-term instruments, and the other half are long-term. Credit note (CLN) is a financial instrument that allows the issuer to transfer certain credit risks to credit investors. Debt securities are financial assets that entitle their holders to a stream of interest payments. The Fixed Income Clearing Corporation is the clearing house for certain fixed income securities traded in the United States. A floating fee is a security interest or lien over a group of non-permanent assets that fluctuate in quantity and value. A humped yield curve occurs when medium-term interest rates are higher than both short-term and long-term rates. An interpolated yield curve or “curve I” refers to a yield curve constructed using data on the yield and maturity of outstanding Treasury securities.