Delivery versus Payment
Links securities delivery and payment so that delivery occurs if and only if payment occurs.
Market use
Designed to reduce principal risk in securities settlement.
What it means
Links securities delivery and payment so that delivery occurs if and only if payment occurs.
Example
The securities and cash legs are coordinated within the settlement arrangement.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Conventions
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.