Fixed Income

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[NOT RATED (NR)]

Not rated means a bond or issuer lacks a public credit rating from the referenced rating agency or rating scale.

€STR

Euro overnight funding benchmark used in derivatives, floating-rate contracts, and euro-area money markets.

11th District Cost of Funds Index

11th District Cost of Funds Index is a benchmark-rate concept used in loan pricing, derivatives, valuation, or interest-rate analysis.

AAA Credit Rating

An AAA credit rating is the highest long-term rating category, signaling exceptionally strong capacity to meet financial commitments.

ABCP

ABCP is short-term asset-backed commercial paper issued against receivables or other financial assets through a conduit or special-purpose vehicle.

ABMTN

An ABMTN is an asset-backed medium-term note that combines securitized collateral cash flows with intermediate-term debt funding.

Above Par

Above Par refers to an asset trading at a price higher than its par value. It commonly applies to bonds but can be used for other financial instruments.

Accommodation Bill

An accommodation bill is a bill of exchange signed by a guarantor known as the accommodation party, who is liable if the acceptor defaults.

Accrual Bond

An accrual bond is a type of bond where interest accrues over time instead of being paid out periodically, typically seen in zero-coupon bonds (also known as Z-Bonds).

Advance Refunding

Advance refunding refinances outstanding bonds more than 90 days before redemption, usually using escrowed proceeds until call or maturity.

After Date

After date is a payment term in bills of exchange measuring maturity from the date written on the instrument.

Agency Bond

An agency bond is issued by a government agency or government-sponsored enterprise, often offering high credit quality with agency-specific risk.

Alternative Reference Rates (ARR)

Alternative Reference Rates (ARR) is a benchmark-rate concept used in loan pricing, derivatives, valuation, or interest-rate analysis.

Amortizable Bond Premium

An amortizable bond premium is the above-par amount investors allocate over a bond's remaining life for tax, accounting, and yield purposes.

Amortized Bond

An amortized bond spreads premium or discount over time so carrying value and interest income reflect the effective yield.

Amortizing Bonds

Amortizing bonds repay principal gradually through scheduled payments, reducing outstanding balance and changing cash-flow and duration behavior over time.

Annuity In Arrears

Annuity In Arrears is a financial instrument term used in contract analysis, payoff profiles, pricing, income claims, or risk transfer.

Arbitrage Bond

An arbitrage bond is a state or local bond whose tax-exempt status is threatened by prohibited investment arbitrage on bond proceeds.

As Per Advice

As per advice is a bill-of-exchange instruction indicating payment should follow separate advice or notice.

Structured Credit

Asset-backed security, ABCP, CBO, pass-through, securitization vehicle, and structured-credit terms.

Asset-Backed Commercial Paper

Asset-backed commercial paper is short-term debt issued by a conduit and backed by receivables, loans, or other financial assets.

Asset-Backed Medium-Term Note

An asset-backed medium-term note is a structured debt security backed by pooled assets and issued with intermediate maturities.

Asset-Backed Security

An asset-backed security is backed by pooled receivables or loans, converting asset cash flows into tradable structured-credit securities.

Auction Rate Securities

Auction rate securities are long-term instruments with rates reset through periodic auctions, creating liquidity risk when auctions fail.

Average Life

Average life estimates the weighted average time until principal is repaid on amortizing, callable, or asset-backed securities.

Ba1

Ba1 is a credit rating that signifies higher credit risk, one notch below Baa1, often given to non-investment grade financial instruments.

Baa1

Baa1 is Moody's highest medium-grade rating, generally considered investment grade but exposed to moderate credit risk.

Baby Bond

Small-denomination bond, often exchange-listed, that can make bond exposure accessible while still carrying issuer, rate, call, and liquidity risk.

Back-Loaded Interest

Back-loaded interest shifts more financing cost to later periods, affecting cash-flow timing, credit risk, affordability, and total return.

Bank Bill Swap Rate (BBSW)

Bank Bill Swap Rate (BBSW) is an interbank benchmark-rate concept used to price loans, derivatives, and floating-rate instruments.

Banker's Acceptance

A banker's acceptance is a time draft accepted by a bank and used in trade finance and short-term money markets.

Banker's Discount

Banker's discount calculates the discount deducted when a bill or note is purchased before maturity.

BBB

BBB is the lowest broad S&P and Fitch investment-grade rating category, marking adequate credit quality with greater sensitivity to stress.

Bearer Bond

A bearer bond is an unregistered debt security payable to the holder of the physical certificate, creating transferability, custody, tax, and compliance risks.

Bearer Security

A bearer security is owned by whoever physically holds the certificate, creating transferability, custody, tax, and compliance concerns.

Below Par

Below par means a bond or security trades below its face or par value.

Benchmark Rate

Benchmark Rate is a benchmark-rate concept used in loan pricing, derivatives, valuation, or interest-rate analysis.

Bid-to-Cover Ratio

The bid-to-cover ratio compares total bids received with securities offered in an auction, indicating demand for the issue.

Bloomberg Aggregate Bond Index

The Bloomberg Aggregate Bond Index is a major U.S. investment-grade bond benchmark used by funds, advisors, and asset allocators.

Bloomberg Global Aggregate Bond Index

The Bloomberg Global Aggregate Bond Index tracks global investment-grade fixed income across government, corporate, securitized, and supranational debt.

Bond

A bond is a debt security in which an issuer borrows from investors and promises interest, principal repayment, or both under stated terms.

Bond Agreement

A bond agreement defines the issuer's payment obligations, investor rights, covenants, default remedies, and other terms for a bond issue.

Bond Auction

A bond auction sells new debt to investors through competitive or noncompetitive bids, helping determine issue price and yield.

Bond Broker

A bond broker helps buyers and sellers execute fixed-income trades, source liquidity, and compare prices in dealer-driven markets.

Bond Counsel

Bond counsel is specialized legal counsel that helps public finance issuers validate bond authority, documents, and tax-related legal opinions.

Bond Covenant

A bond covenant is an issuer promise or restriction in a bond document that can affect credit risk, default rights, and investor protection.

Bond Default Swap

A bond default swap transfers credit risk on a bond issuer or obligation, functioning as protection against a defined credit event.

Bond Discount

A bond discount is the amount a bond trades below par value, affecting yield, tax treatment, and issuer accounting.

Bond Equilibrium

Bond equilibrium is the price-yield level where investor demand and issuer supply balance in the bond market.

Bond Equivalent Yield

Bond equivalent yield annualizes a short-term discount return on a bond-style basis so money-market instruments can be compared.

Bond Face Value

Bond face value is the principal amount used to calculate coupons and usually repaid at maturity, distinct from the bond's market price.

Funds and Portfolios

Bond index, fund, ladder, benchmark, and fixed-income portfolio-construction terms.

Bond Indenture

A bond indenture is the legal contract that sets payment terms, covenants, collateral, default provisions, and trustee duties for a bond issue.

Bond Insurer

A bond insurer guarantees scheduled principal and interest on insured bonds, improving perceived credit quality and affecting yields.

Bond Issuance

Bond issuance is the process of raising debt capital by selling bonds to investors through public offerings, private placements, or auctions.

Bond Issuer

A bond issuer is the borrower that sells bonds to raise debt capital and promises interest and principal payments under the bond terms.

Bond Ladder

A bond ladder holds bonds with staggered maturities to balance income, reinvestment opportunities, liquidity, and rate risk.

Bond Laddering

Bond laddering is a strategy involving the purchase of bonds with different maturities to manage interest rate risk and provide a consistent income stream.

Bond Market

The bond market is where debt securities are issued and traded, shaping borrowing costs, yields, credit spreads, and investment income.

Trading and Plumbing

Bond-market auction, quote, broker, repo, stripping, clearing, and trading-infrastructure terms.

Bond Premium

A bond premium is the amount a bond trades above face value, usually when its coupon exceeds current market yields.

Bond Prospectus

A bond prospectus is an offering disclosure document that summarizes issuer information, security terms, risks, and use of proceeds for a bond sale.

Bond Quote

A bond quote shows the price, yield, or spread at which a bond may trade, helping investors compare value and execution levels.

Bond Rating

A bond rating is a credit opinion on an issuer's ability to pay interest and principal, used in pricing, eligibility, and risk limits.

Bond Trusts

Bond trusts are pooled fixed-income vehicles or trust structures that hold bonds for income, diversification, or structured repayment.

Bond Valuation

Bond valuation estimates a bond's fair price by discounting coupon and principal cash flows at an appropriate yield.

Bond Yield

Bond yield is a return measure linking bond price, coupon, maturity, and redemption value for fixed-income comparison.

Bond-Rating Agency

A bond-rating agency assesses debt issuer credit quality and assigns ratings used in bond pricing, mandates, and risk limits.

Bonded Debt

Bonded debt is borrowing represented by outstanding bonds, often tracked separately from loans, notes, leases, and other obligations.

Bondholder

A bondholder is an investor or institution that owns a bond and holds a creditor claim on the issuer's promised cash flows.

Bonds

Bond-market terms for fixed-income securities, yields, duration, credit risk, issuer types, and portfolio use.

Book-Entry Securities

Book-entry securities are ownership positions recorded electronically rather than represented by physical certificates.

Build America Bonds

Build America Bonds were taxable municipal bonds issued in 2009 and 2010 with federal tax-credit or direct-payment subsidy features.

Bulldog Bond

A Bulldog bond is a sterling-denominated bond issued in the United Kingdom by a non-UK borrower.

Bullet Bond

Bond structure that repays principal in one lump sum at maturity while paying coupon interest during the life of the issue.

Call Date

A call date is the first or specified date when an issuer may redeem a callable bond before maturity under the bond's terms.

Call Money

Call money is short-term wholesale funding repayable on demand or at very short notice, often overnight.

Call Provision

A call provision gives an issuer the right to redeem a bond before maturity, affecting yield, price, and reinvestment risk.

Callable Bond

Bond the issuer may redeem before maturity, creating call risk and limiting investor upside when rates fall.

Capped and Renewable

Capped, floored, and renewable variable-rate debt structures that change coupon upside, reset exposure, and reinvestment risk.

Capped Floating-Rate Note

A capped floating-rate note has a variable coupon with a maximum rate, limiting income upside when benchmark rates rise.

CBO

A CBO is a collateralized bond obligation backed by a pool of bonds and divided into tranches with different credit risk and return profiles.

CDX

CDX or Credit Default Swap Index is a financial instrument that provides diversified risk and broad market exposure, and is standardized and traded in the derivative market.

Clipping Coupons

Clipping coupons originally meant removing bond coupons for interest payment; in fixed income it now explains coupon-income history and terminology.

CDO

A collateralized debt obligation pools debt exposures into tranches with different credit risk, priority, and return profiles.

Common Stock Equivalent

A common stock equivalent is a security or claim that can become common stock and affect diluted ownership or earnings per share.

Consol

A consol is a perpetual government bond that pays interest indefinitely without a fixed principal repayment date.

Conventional Gilts

Standard UK government bonds that pay periodic interest and return the principal at maturity.

Conversion Ratio

Conversion ratio states how many shares a convertible security can be exchanged for under its conversion terms.

Conversion Right

A conversion right lets investors exchange a bond, note, or preferred share for equity under preset terms and ratios.

Convertible Arbitrage

Convertible arbitrage compares a convertible security with the issuer's stock, credit risk, volatility, and hedge cost.

Convertible Bond

A convertible bond pays debt-like cash flows while giving holders the option to convert into the issuer's equity.

Convertible Note

A convertible note is debt that can convert into equity, often used in startup financing before a priced funding round.

Convertible Preference Shares

Convertible preference shares combine preferred-share rights with an option to convert into common equity under stated terms.

Convertible Preferred Stock

Convertible preferred stock pays preferred dividends while giving holders the right to convert into common shares under stated terms.

Convertible Security

A convertible security can be exchanged for another security, usually common stock, linking fixed-income protection with equity upside.

Convexity

Convexity measures curvature in the bond price-yield relationship and refines duration-based rate-risk estimates.

Floating-Rate Notes

Core floating-rate note terms for FRNs, floating rates, reset spreads, benchmark indexes, and coupon reset mechanics.

Core Revenue Bonds

Core municipal revenue bond structures covering pledged revenues, municipal revenue bonds, and special assessment bonds.

Corporate Bond

A corporate bond is debt issued by a company to raise capital, with pricing driven by coupon, maturity, seniority, and credit risk.

Coupon

A coupon is a bond's scheduled interest payment or stated interest feature, used to analyze cash-flow timing, yield, and reinvestment risk.

Coupons and Interest

Bond coupon and interest-payment structures, including fixed coupons, deferred interest, PIK interest, zero-coupon bonds, and irregular coupon periods.

Coupon Bond

A coupon bond pays periodic interest, historically through detachable coupons, and is compared with registered, book-entry, and zero-coupon bonds.

Coupon Date

A coupon date is a scheduled date when a bond issuer pays interest, important for accrual, settlement, call timing, and cash-flow planning.

Coupon Payment

A coupon payment is the cash interest a bond issuer pays on scheduled dates, usually based on coupon rate, par value, and payment frequency.

Coupon Period

A coupon period is the interval between scheduled bond interest payment dates, used in accrual, yield, and cash-flow analysis.

Coupon Rate

A bond's coupon rate is its stated annual interest percentage on par value, used to calculate contractual coupon payments.

Coupon Stripping

Coupon stripping separates a bond's interest payments and principal repayment into separately tradable zero-coupon securities.

Coupon Yield

Coupon yield measures a bond's annual coupon interest as a percentage of face value, distinct from current yield or yield to maturity.

Credit Spread

Extra bond yield investors demand over a safer benchmark to compensate for credit risk and related fixed-income risks.

Current Refunding

Current refunding refinances outstanding bonds when the prior bonds are redeemed immediately or within the current-refunding window.

Current Yield

Bond income measure comparing annual coupon payments with the bond's current market price.

Debenture Bonds

Debenture bonds are corporate debt obligations backed by issuer credit rather than specific pledged collateral.

Debt Security

A debt security is a tradable borrowing instrument that gives investors contractual claims to interest, principal, or both.

Deep Discount Bond

A deep discount bond trades far below face value, often because of low coupon, credit risk, long maturity, or zero-coupon structure.

Deeply Discounted Security

A deeply discounted security is issued or trades far below redemption value, making accretion, yield, and tax treatment central.

Default Spread

A default spread is the yield premium investors require for default risk relative to safer bonds with similar maturity.

Deferred Interest Bond

A deferred interest bond delays cash interest, so accrued interest, accretion, tax timing, and issuer credit risk drive analysis.

Delivery Options

Embedded flexibility in futures or deliverable contracts over delivery timing, eligible instrument, location, quality, or quantity.

Dilution Effect on EPS

Dilution effect on earnings per share measures how convertibles, options, or warrants could reduce EPS if exercised or converted.

Dilutive Securities

Dilutive securities are instruments that can increase common shares outstanding and reduce ownership or per-share metrics.

Dim Sum Bond

A dim sum bond is an offshore renminbi-denominated bond, commonly issued in Hong Kong for investors seeking RMB exposure.

Discount Bond

A discount bond trades below face value, usually because its coupon is below current market yields or credit risk has increased.

Discount Market

A discount market is a short-term money market where bills and other instruments trade below face value and mature at par.

DV01

Dollar-based bond risk measure showing how much a position's value should change for a one-basis-point move in yield.

Downgrade

A downgrade is a lower credit rating assigned to an issuer or security, signaling higher perceived default risk and borrowing costs.

Dragon Bond

A Dragon bond is an international bond issued in Asian markets outside Japan, often used by foreign issuers to reach regional investors.

Dual Currency Bond

A dual currency bond pays coupons and principal in different currencies, creating fixed-income returns with embedded foreign-exchange exposure.

Duration

Interest-rate sensitivity measure showing how strongly a bond's price should react to yield changes.

Rate Risk

Duration, convexity, curve-risk, holding-period, and interest-rate sensitivity terms for fixed income.

Education Savings Bond

The education savings bond exclusion may let eligible taxpayers exclude interest on qualified Series EE or I bonds used for higher education expenses.

Education, Patriot, and War Bonds

Public-purpose bond terms for the education savings bond tax exclusion, Patriot Bonds, war bonds, and historical retail government finance.

Effective Duration

Effective duration estimates bond price sensitivity when embedded options or prepayments can change expected cash flows.

Eligible Paper

Eligible Paper is a financial instrument term used in contract analysis, payoff profiles, pricing, income claims, or risk transfer.

Endorsement

Endorsement transfers or confirms rights in a negotiable instrument, security, check, or related financial document.

EONIA

EONIA is the overnight reference rate for the eurozone interbank market, as computed by the European Central Bank.

Equipment Trust Bond

An equipment trust bond is secured by transportation or industrial equipment and repaid from issuer payments tied to the asset.

Equipment Trust Certificate

An equipment trust certificate represents a secured interest in equipment financing, often used by railroads, airlines, or transport companies.

EURIBOR

EURIBOR is an interbank benchmark-rate concept used to price loans, derivatives, and floating-rate instruments.

Eurobond

A Eurobond is issued outside the country of its currency, letting borrowers access cross-border investors and offshore markets.

Eurodollar Bond

A Eurodollar bond is a U.S.-dollar bond issued outside the United States, giving borrowers access to offshore dollar funding.

Ex-Legal Municipal Bond

An ex-legal municipal bond delivery lacks the usual legal-opinion attachment or support, so buyers review legal and tax evidence separately.

Exchange-Traded Notes (ETNs)

Exchange-traded notes are unsecured debt instruments whose returns track an index or strategy and depend on issuer credit quality.

Exotic Currency Bond

An exotic currency bond is issued in a less commonly traded currency, adding currency risk to fixed-income exposure.

Expectation Theory

Term-structure theory stating that longer-maturity yields mainly reflect expected future short-term interest rates.

Extendible Bond Issue

An extendible bond issue allows maturity extension under specified terms, changing duration, reinvestment risk, and issuer funding flexibility.

Fallen Angel

A fallen angel is a bond that lost investment-grade status after a downgrade, often widening spreads and forcing sales by restricted investors.

Federal Agency Security

A federal agency security is debt issued or guaranteed by a U.S. government agency or government-sponsored enterprise.

Fitch Ratings

Fitch Ratings is a major credit-rating agency whose ratings help investors assess issuer default risk, bond credit quality, and market pricing.

Fixed Income

Fixed income covers investments that provide scheduled interest or principal cash flows, including bonds, notes, funds, and preferred securities.

Fixed Income Trust

A fixed income trust holds debt securities or income-producing assets under a trust structure for investors or beneficiaries.

Fixed-Income Investment

A fixed-income investment provides contractual income or principal payments, with risk driven by rates, credit, liquidity, and maturity.

Fixed-Income Security

A fixed-income security provides scheduled interest, coupon, or principal payments under defined contractual terms.

Fixed-Interest Security

A fixed-interest security pays stated interest or income under defined terms, making cash-flow predictability, rate risk, and credit risk central to analysis.

Fixed-Rate Bond

A fixed-rate bond pays a stated coupon that does not reset, making cash income predictable but market value sensitive to rates and credit spreads.

Fixed-Rate Note

A fixed-rate note is a debt instrument with a coupon that stays constant, creating predictable interest payments but rate-sensitive market value.

Flat Curve

Yield-curve shape in which short- and long-maturity bonds offer similar yields, often signaling transition or uncertainty.

Floating Rate

A floating rate is an interest rate that resets by formula against a benchmark, changing coupon payments as the reference rate moves.

Floating and Inflation

Floating-rate, variable-rate, and inflation-linked bond structures that adjust coupons, principal, or redemption values using rates or price indexes.

Floating-Rate Note

A floating-rate note pays interest that resets against a benchmark plus a spread, reducing fixed-rate duration while preserving credit and spread risk.

Floating Rate Notes

Fixed-income guide to FRNs, VRNs, floating-rate notes, variable-rate bonds, demand notes, and capped floating-rate notes.

Foreign Bond

A foreign bond is issued by a nonresident borrower in a domestic market and denominated in that market's currency.

Forward Rate

Future interest rate implied by today's term structure, widely used in curve analysis, hedging, and rate derivatives.

FRN

FRN stands for floating-rate note, a debt security whose coupon resets periodically using a benchmark rate plus or minus a spread.

Futures Rate

Market-implied rate derived from an interest-rate futures contract or another futures quote tied to a rate.

G-Spread

Bond spread measure comparing a bond's yield with the yield of a government bond of similar maturity.

Geisha Bond

Geisha Bonds, also known as Shogun Bonds, are yen-denominated bonds issued by non-Japanese entities in the Japanese financial market.

GO and Moral Obligation

Municipal bond pledge terms covering general obligation bonds, unlimited-tax support, limited-tax constraints, and moral obligation structures.

General Obligation Bond

A general obligation bond is a municipal bond backed by an issuer's broad credit and taxing power rather than a single project revenue source.

Gilt

A gilt is a UK government bond used to finance public borrowing and benchmark sterling interest-rate markets.

Gilt Repo Market

The gilt repo market is the UK secured funding market where cash is borrowed and lent against gilt collateral.

Gilt Strip

A gilt strip is a zero-coupon UK government security created by separating a gilt's principal and interest cash flows.

Gilt-Edged Security

A gilt-edged security is a high-quality government bond, especially a UK gilt, associated with low default risk and benchmark status.

Global Bond

A global bond is offered across multiple markets at issuance, broadening investor access and liquidity for large cross-border borrowers.

Globally Traded Bonds

Globally traded bonds are debt securities issued or sold across multiple markets to reach international investors.

Government Agency Securities

Government agency securities are debt instruments issued or backed by public agencies or government-sponsored entities.

Government Bond

A government bond is debt issued by a sovereign or public authority to finance spending, manage cash needs, or support policy operations.

Granny Bond

A granny bond is a retail-oriented bond marketed to individual savers, often associated with government or savings-style debt programs.

Green Bond

A green bond raises capital for eligible environmental or climate-related projects while still requiring ordinary credit and use-of-proceeds analysis.

Guaranteed Bond

A guaranteed bond has principal and interest supported by another party, so investors evaluate both issuer risk and guarantor strength.

High-Grade Bond

A high-grade bond carries one of the strongest credit ratings, usually AAA or AA, and typically offers lower yields than riskier bonds.

High-Yield Bond

A high-yield bond is below investment grade, so investors demand higher yields for greater default, downgrade, and liquidity risk.

High-Yield Bond Spread

A high-yield bond spread is the extra yield investors demand over benchmarks for holding below-investment-grade credit risk.

Hospital Revenue Bond

A hospital revenue bond finances hospital or health-system facilities and is repaid primarily from pledged health-system operating revenues.

Housing Bond

A housing bond is a municipal or agency bond used to finance affordable housing, mortgages, rental projects, or housing authority programs.

Humped Curve

Yield-curve shape in which intermediate maturities yield more than both short and long maturities.

IBOR

IBOR is an interbank benchmark-rate concept used to price loans, derivatives, and floating-rate instruments.

Income Bond

An income bond pays interest only when earnings or contract conditions allow, making cash flow contingent and credit risk central.

Indenture

Indenture is a financial instrument term used in contract analysis, payoff profiles, pricing, income claims, or risk transfer.

Index-Linked Bond

An index-linked bond adjusts principal, coupon, or redemption value using a reference index such as an inflation measure.

Index-Linked Gilt

An index-linked gilt is a UK government security that adjusts interest and principal payments in line with inflation, offering protection against inflationary risks.

Indexed Securities

Indexed securities link payments, principal, or returns to an index such as inflation, rates, commodities, or equity performance.

Industrial Development Bond

An industrial development bond is a municipal or authority financing tool for eligible private industrial or economic-development projects.

Industrial Revenue Bond

An industrial revenue bond is issued by a public authority for a private industrial project, with repayment usually tied to borrower or project revenues.

Inflation-Indexed Securities

Inflation-indexed securities adjust principal, interest, or redemption values with inflation measures to reduce purchasing-power risk.

Inflation Linked

Inflation-linked and index-linked fixed-income securities that adjust principal, coupons, or redemption values using price indexes or other reference measures.

Inflation-Linked

Government inflation-linked securities, including TIPS and retail savings bonds, whose cash flows adjust with inflation measures.

Interbank Market

Interbank Market is a benchmark-rate concept used in loan pricing, derivatives, valuation, or interest-rate analysis.

Interbank Offered Rates

Interbank Offered Rates is an interbank benchmark-rate concept used to price loans, derivatives, and floating-rate instruments.

Interbank Rate

Interbank Rate is a benchmark-rate concept used in loan pricing, derivatives, valuation, or interest-rate analysis.

Intermediate-Term Bonds

Intermediate-term bonds sit between short- and long-maturity debt, balancing income, reinvestment risk, and interest-rate sensitivity.

International Bond Investing

International bond investing uses non-domestic debt securities to diversify yield, currency, duration, sovereign risk, and credit exposure.

International Bonds

International bonds are debt securities sold outside an issuer's home country, exposing investors to currency, country, and cross-border credit risks.

Inverted Curve

Yield-curve shape in which shorter maturities yield more than longer maturities, often interpreted as a slowdown warning.

Investment Grade Credit Ratings

Investment grade credit ratings indicate relatively lower credit risk and help determine bond eligibility, pricing, and capital treatment.

Investment Notes

Debt securities marketed as notes, where maturity, issuer, registration, structure, and credit support determine the real fixed-income risk.

Investment-Grade Bond

An investment-grade bond carries a relatively strong credit rating, making default risk, yield spread, and portfolio eligibility central to analysis.

Japanese Government Bond (JGB)

A Japanese Government Bond is debt issued by Japan's government and used as a benchmark for yen rates, fiscal funding, and sovereign risk.

Joint Bond

Bond backed by more than one obligor or guarantor, where repayment analysis depends on each party's legal obligation and credit strength.

Junk Bond

A junk bond is a below-investment-grade debt security with higher credit risk and usually higher yield than investment-grade bonds.

Kangaroo Bond

A Kangaroo bond is an Australian-dollar bond issued in Australia by a non-Australian borrower, giving foreign issuers local-market funding.

Key Rate Duration

Yield-curve sensitivity measure showing how exposed a bond or portfolio is to one specific maturity point on the curve.

Kiwi Bond

Kiwi Bonds are government-backed securities offered directly to the public, exclusively available to New Zealand residents, providing a secure investment option.

Laddering

Laddering is an investment strategy involving the purchase of bonds that mature at different intervals, providing regular income and mitigating interest rate risk.

LCDS

A Loan Credit Default Swap (LCDS) is a financial derivative that allows parties to hedge or speculate on the risk of default in syndicated loan markets.

Liberty Bonds

Liberty Bonds were U.S. government war-finance bonds sold during World War I, important for public debt history and war-bond comparisons.

LIBID

LIBID is an interbank benchmark-rate concept used to price loans, derivatives, and floating-rate instruments.

LIBOR

Legacy interbank benchmark rate still encountered in older loans, bonds, and derivatives despite its phaseout.

LIBOR Curve

LIBOR Curve is a benchmark-rate concept used in loan pricing, derivatives, valuation, or interest-rate analysis.

LIBOR Scandal

LIBOR Scandal is a benchmark-rate term used in loan pricing, derivatives, valuation, or interest-rate analysis.

LIBOR vs. SONIA

LIBOR vs. SONIA is an interbank benchmark-rate concept used to price loans, derivatives, and floating-rate instruments.

LIMEAN

LIMEAN is an interbank benchmark-rate concept used to price loans, derivatives, and floating-rate instruments.

Liquidation Preference

Liquidation preference gives specified investors priority in receiving proceeds before common shareholders in a sale, liquidation, or exit.

Liquidity Preference Theory

Term-structure theory arguing that longer maturities usually need extra yield because investors prefer liquidity and shorter commitments.

Long Bond

A long bond is a long-maturity debt security, often referring to a 30-year government or corporate bond.

Long Coupon

A long coupon is an irregular coupon period longer than the standard interval, affecting accrued interest, first payments, and yield calculations.

Long-Dated Security

Long-dated securities have distant maturities, making duration, inflation exposure, credit horizon, and liquidity central to fixed-income analysis.

M-CATS

M-CATS are municipal zero-coupon securities structured from Treasury cash flows.

Macaulay Duration

Macaulay duration measures the present-value-weighted average timing of a bond's cash flows.

Market Segmentation Theory

Term-structure theory arguing that different maturity zones are priced by separate investor demand rather than one unified expectations curve.

Matilda Bond

Australian-dollar bond issued in Australia by a foreign borrower.

Maturity

Maturity is the point when a bond, note, loan, or other financial obligation comes due for scheduled repayment.

Maturity Date

A maturity date is the scheduled date when a bond or debt instrument repays principal, anchoring yield, duration, and cash-flow planning.

Medium-Dated Security

A medium-dated security has an intermediate maturity, so analysis focuses on yield, duration, credit quality, and refinancing timing.

Medium-Term Bond

A medium-term bond is a debt security with a maturity between short-term and long-term bonds, used to compare yield, duration, and credit exposure.

Medium-Term Note

A medium-term note is a debt security often issued under a program with flexible maturities, coupon structures, and pricing supplements.

Minimum Lending Rate

The Minimum Lending Rate (MLR) was the minimum rate at which the Bank of England lent to UK discount houses between 1971 and 1981, serving as a key interest rate benchmark.

Modified Duration

Modified duration estimates the percentage price change of a fixed-income security for a small change in yield.

Money at Call and Short Notice

Money at call and short notice is very short-term wholesale lending repayable on demand or within a short notice period.

Money Market Instruments

Money market instruments are short-term funding and cash-placement instruments used by governments, banks, companies, funds, and treasury desks.

Monoline Insurer

A monoline insurer provides financial guarantees on bonds or structured products, offering credit enhancement but concentrating guarantee risk.

Moody's

Moody's is a major credit-rating agency whose issuer and security ratings influence bond pricing, disclosure, and risk management.

Moral Obligation Bond

A moral obligation bond is municipal debt supported by a nonbinding covenant to request or consider appropriations for reserve or revenue shortfalls.

Municipal Bond

A municipal bond is debt issued by a state, local government, public authority, or similar issuer to finance public projects or operations.

Municipal Basics

Municipal bond basics covering municipal securities, tax-exempt interest, private-activity bonds, and legal-opinion status.

Municipal Revenue Bond

A municipal revenue bond is a municipal security repaid from pledged project, system, authority, or enterprise revenues rather than broad taxing power.

Municipal Securities

Municipal securities are public-purpose securities, mainly bonds and notes, issued by state, local, authority, or similar issuers.

Municipal and Savings

Municipal, public-purpose, revenue, tax-exempt, savings, and retail government bond terms used in fixed-income analysis.

Negative Arbitrage

Negative arbitrage occurs when invested proceeds earn less than the borrowing or refunding cost, reducing financing efficiency.

Negative Bond Yield

A negative bond yield means the buyer accepts an expected nominal return below zero if held under stated assumptions.

Negative Convexity

Negative convexity is unfavorable bond price-yield curvature where upside is constrained as yields fall, often because calls or prepayments become more likely.

Negotiability

Negotiability is the ability of an instrument to be transferred so the holder can enforce payment rights.

Negotiable Instrument

A negotiable instrument is a transferable document that gives the holder payment rights under defined legal rules.

Nominal Spread

Nominal spread is the yield difference between a bond and a comparable Treasury benchmark without adjusting for curve shape.

Nominal Yield

Nominal yield is annual coupon interest divided by a bond's face value.

Noncallable Bonds

Noncallable bonds cannot be redeemed early by the issuer before maturity, giving investors more predictable interest-rate exposure.

Noncallable Preferred Stock or Bond

A noncallable preferred stock or bond cannot be redeemed early by the issuer, giving investors stronger call protection and income visibility.

Noncompetitive Bid

A noncompetitive bid lets Treasury investors accept the auction's awarded yield instead of specifying a price or yield.

Nonrefundable Provision

A nonrefundable provision restricts an issuer from refinancing callable debt with cheaper borrowing during a specified protection period.

Normal Curve

Upward-sloping yield curve in which longer maturities offer higher yields than shorter maturities of similar credit quality.

Note

A note is a written debt instrument promising repayment under stated principal, interest, maturity, or demand terms.

Off-The-Run Treasuries

Off-the-run Treasuries are older U.S. Treasury issues that usually trade with less liquidity and different yields than current benchmark issues.

On-The-Run Treasury Yield Curve

The on-the-run Treasury yield curve uses the most recently issued Treasury securities to show current benchmark yields across maturities.

OAS

Fixed-income spread measure that removes embedded-option value so callable or prepayable bonds can be compared more fairly.

Order Paper

Order paper is a negotiable instrument payable to a named person or that person's order.

Original Maturity

Original maturity is the time from a bond's issue date to its stated maturity date.

Overnight Money

Overnight money is very short-term institutional funding borrowed and repaid by the next business day.

Overnight Rate

Overnight Rate is a benchmark-rate concept used in loan pricing, derivatives, valuation, or interest-rate analysis.

Par Bond

A par bond trades at or near face value, so its coupon rate is close to the market yield for comparable risk and maturity.

Par Curve

Yield-curve version built from hypothetical par bonds, used to compare coupon-bearing benchmarks across maturities.

Pass-Through Security

A pass-through security distributes principal and interest from pooled loans to investors after servicing and administrative fees.

Patriot Bond

A Patriot Bond was a paper Series EE savings bond designation used after September 11, 2001, with ordinary EE bond mechanics.

PIK Bonds

Payment-in-kind bonds let issuers pay interest with additional debt instead of cash, preserving liquidity while increasing leverage and credit risk.

Perpetual Bond

A perpetual bond has no scheduled maturity date, so value depends on coupon durability, issuer credit, call terms, and required yield.

PIBS

Permanent Interest Bearing Shares are perpetual income securities often issued by building societies, combining fixed-income payments with capital-risk features.

Positive Bond Yield

A positive bond yield means the bond offers an expected return above zero before considering taxes, inflation, or realized reinvestment outcomes.

Preference Share Capital

Preference share capital is equity with priority dividend or liquidation rights compared with ordinary common shares.

Preferred & Hybrid Capital

Preferred, Senior, and Hybrid Capital covers Liquidation Preference, Non-Participating Preference Share, Preference Share Capital, Senior Capital, and related corporate-finance topics for …

Premium Bond

A premium bond trades above face value, usually because its coupon rate is higher than current yields on comparable bonds.

Private Activity Bonds

Private activity bonds are municipal bonds whose proceeds materially benefit private users, making tax qualification and conduit credit analysis central.

Promissory Note

A promissory note is a written promise to pay a specified amount under defined timing and payment terms.

Public Bonds

Public bonds are debt securities issued by governments or public authorities, or publicly offered bonds subject to public-market disclosure and trading rules.

Public Housing Authority Bond

A public housing authority bond finances public housing projects and may be repaid from authority revenues, HUD-supported funds, or other pledged sources.

Purchasing Treasury Bills

Purchasing Treasury bills means buying short-term U.S. government debt through auction, brokerage, or secondary-market channels.

Put Feature

A put feature gives bondholders the right to sell a bond back to the issuer before maturity at a stated price or date.

Putable Bond

A putable bond is a type of bond that allows the holder to sell it back to the issuer at a predefined price before maturity, offering flexibility and risk management.

Quarterly Income Preferred Securities

Quarterly Income Preferred Securities is a financial instrument term used in contract analysis, payoff profiles, pricing, income claims, or risk transfer.

Rated

A rated issuer or security has received a credit rating that investors use to compare default risk, pricing, and portfolio eligibility.

Redemption Yield

Redemption yield estimates a bond's annualized return from coupon income plus gain or loss to a redemption date.

Reference Bank

Reference Bank is a benchmark-rate concept used in loan pricing, derivatives, valuation, or interest-rate analysis.

Reference Index

The Reference Index is a benchmark interest rate, such as LIBOR or the Federal Funds Rate, used to set floating loan rates.

Refunding

Municipal refunding and public finance issuance terms covering current refunding, advance refunding, escrow mechanics, and call timing.

Registered Bond

A registered bond records the owner's name with the issuer or agent, allowing payments and transfers to be tracked by registration.

Repackaged Perpetual Debt

Repackaged perpetual debt restructures perpetual bond cash flows or exposures into securities with different income, risk, or investor-facing features.

Repo Transaction

A repo transaction is a short-term secured funding trade where securities are sold for cash and later repurchased.

Reset Bonds

Reset Bonds is a financial instrument term used in contract analysis, payoff profiles, pricing, income claims, or risk transfer.

Project-Backed Revenue Bonds

Municipal bond terms for project-backed repayment sources, pledged revenues, assessments, utilities, hospitals, housing, and industrial facilities.

Revenue Bonds

Municipal bond terms for project-backed revenue pledges, special assessments, public authorities, taxable programs, and historical public-purpose debt.

Revenue Bond

A revenue bond is repaid primarily from a specific project's, facility's, or enterprise's revenues rather than a broad general tax pledge.

Reverse Yield Gap

A reverse yield gap occurs when a bond yield exceeds an equity yield measure, changing the relative valuation signal between fixed income and stocks.

Roll-Down Return

Bond return component earned when a security moves to a lower-yield point on an unchanged or stable upward-sloping curve.

S&P U.S. Aggregate Bond Index

The S&P U.S. Aggregate Bond Index measures broad U.S. investment-grade bond market performance for benchmarking and portfolio comparison.

Sale and Repurchase Agreement

A sale and repurchase agreement is the formal repo contract structure for selling securities today and buying them back later.

Samurai Bond

A Samurai bond is a yen-denominated bond issued in Japan by a non-Japanese borrower, giving foreign issuers access to Japanese investors.

Savings Bond

A U.S. savings bond is a nonmarketable Treasury security for retail savers, with interest, redemption, and tax rules set by Treasury.

Savings Bonds

Retail government bond terms covering U.S. savings bonds, Series bonds, education exclusions, Patriot Bonds, and war-bond history.

Sector Revenue Bonds

Municipal revenue bond terms for utility, hospital, housing, public-housing authority, industrial, and economic-development financing.

Secured Bond

A secured bond is backed by pledged collateral, giving bondholders a claim on specified assets if the issuer defaults.

Secured Loan Stock

Secured loan stock is debt backed by collateral, giving lenders asset claims that can affect recovery value and credit pricing.

Securitized Bond

Bond backed by a pool of financial assets such as mortgages, receivables, or other cash-flow claims.

Senior Capital

Senior capital has priority over junior capital in payment, liquidation, or claim ranking within a financing structure.

Senior Equity

Senior equity ranks ahead of junior equity for dividends, liquidation proceeds, or negotiated economic rights.

Senior Secured Bonds

Senior Secured Bonds are debt instruments backed by specific collateral, offering higher security to investors and generally receiving higher credit ratings.

Senior Security

Senior security refers to a financial instrument or security that possesses a superior claim over junior obligations and equity on a corporation's assets and earnings.

Serial Bond

A serial bond issue repays principal through scheduled maturities over time, often helping municipalities match debt service to project life or revenues.

Series Bonds

Series bonds are issued in groups with different maturities, rates, or terms under the same financing program.

Series E Bond

A Series E bond was a historical U.S. savings bond series issued from 1941 to 1980 and no longer earns interest.

Series EE Bond

A Series EE bond is a nonmarketable U.S. savings bond with fixed-rate accrual and Treasury-specific redemption rules.

Series HH Bond

A Series HH bond was a discontinued U.S. savings bond that paid semiannual interest and has now reached final maturity.

Series I Bond

A Series I bond is a nonmarketable U.S. savings bond whose composite rate combines a fixed component with an inflation component.

Shallow Discount Bond

A shallow discount bond trades modestly below par value, usually because its coupon is slightly below current market yields.

Shogun Bond

A Shogun bond is issued in Japan by a nonresident borrower but denominated in a currency other than Japanese yen.

Short Bond

A short bond is a bond with a near maturity or short remaining term, making liquidity, reinvestment risk, and rate sensitivity key points to review.

Short-Dated Security

A short-dated security is a financial instrument with a relatively near maturity date.

Short-term T-Bills

Short-term T-bills are Treasury bills with very short maturities, sold at a discount and used as core cash-management instruments.

SIBOR

SIBOR refers to the Singapore interbank offered rate benchmark used in Singapore-dollar loan and derivative contracts.

Single-Name CDS

A single-name CDS is a credit default swap referencing one borrower or issuer rather than an index or basket.

Sinking Fund Provisions

Sinking fund provisions are clauses in bond indentures that require the issuer to periodically set aside funds to repay a portion of the bond before maturity.

SOFR

Treasury-backed overnight funding benchmark widely used in floating-rate loans, swaps, and U.S. dollar valuation.

SONIA

SONIA is an interbank benchmark-rate concept used to price loans, derivatives, and floating-rate instruments.

Sovereign Bond

Sovereign bonds are debt securities issued by a national government, with a promise to pay periodic interest payments and to repay the face value on the maturity date.

Special Assessment Bond

A special assessment bond is a municipal bond repaid from assessments charged to properties that directly benefit from a public improvement.

Special Purpose Vehicle

A special purpose vehicle is a separate legal entity used to hold assets, isolate risk, or support securitization and financing structures.

Speculative Grade

Speculative grade describes below-investment-grade debt with higher default risk, higher yields, and greater sensitivity to credit conditions.

Staggering Maturities

Staggering maturities spreads bond maturities across time to manage reinvestment risk, liquidity needs, and interest-rate exposure.

Standard & Poor's

Standard & Poor's is a financial data, index, and credit-rating firm whose ratings and benchmarks influence bond and equity markets.

Standard & Poor's Rating

A Standard & Poor's rating is an S&P opinion on credit risk, using letter grades to signal default risk and payment capacity.

Straight Bond

A straight bond pays fixed coupons and principal without embedded conversion, call, put, or warrant features, making its cash flows simpler to value.

Stripped Bond

A stripped bond separates principal and coupon cash flows into zero-coupon components that can trade independently.

STRIPPED COUPON

This entry refers to STRIPS in the context of stripped coupon bonds.

STRIPS Bonds

STRIPS bonds are Treasury securities whose interest and principal payments are separated into individual zero-coupon instruments.

Structured Finance

Structured finance uses securitization, tranching, and special-purpose vehicles to reshape asset cash flows, credit risk, and investor exposures.

Structured Investment Vehicle

A structured investment vehicle is a financing vehicle that funds longer-term assets with shorter-term liabilities, creating leverage and liquidity risk.

Sukuk

Sukuk are Sharia-compliant certificates that provide ownership-linked cash flows rather than conventional interest-bearing debt claims.

Sushi Bond

Foreign-currency bond issued by a Japanese entity outside Japan and marketed mainly to Japanese investors.

Tap Stock

Tap stock is gilt-edged or similar debt released gradually from an issue as market conditions support distribution.

Tax-Equivalent Yield

Tax-equivalent yield (TEY) is the pretax yield a taxable bond would need to offer in order to match the after-tax attractiveness of a tax-exempt bond.

Tax-Exempt Bond

A tax-exempt bond pays interest that may be excluded from regular federal income tax, making after-tax yield central to analysis.

Public Purpose Bonds

Public-purpose bond terms covering taxable municipal programs, Build America Bonds, Liberty Bonds, and historical government borrowing campaigns.

Taxable Bond

A taxable bond pays interest that is generally subject to income tax, making after-tax yield the relevant comparison measure.

Term Bond

Bond issue or maturity bucket whose principal comes due on one stated date, often analyzed with call and sinking-fund provisions.

Term Premium

Extra yield investors demand for holding longer maturities instead of repeatedly rolling short-term instruments.

Term to Maturity in Bonds

Term to maturity is the remaining time until a bond's principal is due, shaping yield, duration, reinvestment risk, and pricing.

TIBOR (Tokyo Interbank Offer Rate)

TIBOR (Tokyo Interbank Offer Rate) is an interbank benchmark-rate concept used to price loans, derivatives, and floating-rate instruments.

TONA

TONA is an interbank benchmark-rate concept used to price loans, derivatives, and floating-rate instruments.

Total Bond Fund

A total bond fund seeks broad fixed-income exposure across sectors, maturities, and issuers, often by tracking an aggregate bond index.

Traditional Coupon Bonds

Coupon-paying bond structure with periodic interest payments and principal repayment, central to fixed-income income and yield analysis.

Traunch

Traunch is an alternative spelling of tranche, a slice of structured finance risk with its own priority, maturity, or cash-flow claim.

Treasury Bill

A Treasury bill is a short-term U.S. government security sold at a discount and used as a core money-market benchmark.

Treasury Bond

A Treasury bond is a long-term U.S. government security with fixed coupon payments and a maturity longer than 10 years.

TIPS

Treasury Inflation-Protected Securities are marketable U.S. Treasury bonds whose principal adjusts with CPI, changing coupon payments and maturity value.

Treasury Note

A Treasury note is a marketable U.S. government security with intermediate maturity, fixed coupons, and benchmark rate importance.

Treasury Securities

Treasury securities are U.S. government debt instruments, including Treasury bills, notes, and bonds, used to finance federal spending and manage public debt.

Treasury Stock Method

The treasury stock method estimates diluted shares from in-the-money options and warrants when calculating diluted earnings per share.

Treasury STRIPS

Treasury STRIPS are zero-coupon securities created by separating U.S. Treasury principal and interest payments into individual tradable claims.

Treasury Yield

Treasury yield is the market interest rate on U.S. Treasury securities, used as a benchmark for discount rates and risk-free curves.

U.S. Savings Bond Series

U.S. savings bond series, including Series EE and Series I bonds, with different accrual, redemption, and tax features.

Ultra-Short Bond Funds

Ultra-short bond funds hold very short-duration fixed-income securities, aiming for modest yield with lower rate sensitivity than core bond funds.

Unamortized Bond Discount

Unamortized bond discount is the remaining below-par issuance discount not yet accreted into interest expense or carrying value.

Unamortized Bond Premium

Unamortized bond premium is the remaining above-par amount not yet allocated to income, tax basis, or carrying value.

Unbiased Expectations

Hypothesis that forward rates are unbiased predictors of future short-term rates, with no systematic term-premium distortion.

Undated Government Bond

An undated government bond has no fixed maturity date, so valuation depends on coupon income, redemption terms, and long-rate assumptions.

Undated Security

An undated security has no fixed redemption date and may pay interest indefinitely or until issuer action.

Underwriting Spread

The underwriting spread is the difference between what underwriters pay an issuer and what investors pay for a new security.

Unlimited Tax Bond

An unlimited tax bond is a general obligation municipal bond backed by authority to levy taxes as needed for debt service, subject to law and authorization.

Unsecured Bond

An unsecured bond is not backed by specific collateral, so repayment depends primarily on the issuer's general creditworthiness.

Utility Revenue Bond

A utility revenue bond finances public utility infrastructure and is repaid primarily from utility system revenues rather than broad taxing power.

Variable-Rate Bond

A variable-rate bond has a coupon that resets periodically, changing interest income while preserving issuer, liquidity, and structure risk.

Variable-Rate Demand

Variable-rate demand and short-term fixed-income securities with frequent resets, tender features, remarketing, and liquidity-support mechanics.

Variable-Rate Demand Bond

A variable-rate demand bond resets frequently and includes a demand or tender feature, often giving long-term municipal debt short-rate behavior.

Variable-Rate Demand Note

A variable-rate demand note combines a frequently reset interest rate with a demand feature that may let investors tender the note at par.

Variable-Rate Note

Variable-Rate Note is a financial instrument term used in contract analysis, payoff profiles, pricing, income claims, or risk transfer.

Variable-Rate Security

A variable-rate security pays interest that resets by benchmark, formula, auction, or remarketing process instead of using one fixed coupon.

VRN

VRN usually means variable-rate note, a debt security whose coupon resets periodically using a benchmark, formula, or market reset process.

War Bonds

War bonds are government debt securities or savings-bond campaigns used to finance wartime spending and mobilize public saving.

Weighted Average Credit Rating

Portfolio-level credit-quality measure that summarizes the average rating profile of a bond fund or fixed-income portfolio.

Weighted Average Maturity (WAM)

Weighted average maturity measures a portfolio's average time to maturity, weighted by each holding's share of assets or principal.

WM/Reuters Benchmark Rates

WM/Reuters Benchmark Rates is a benchmark-rate concept used in loan pricing, derivatives, valuation, or interest-rate analysis.

Workable Indication

A workable indication is a non-firm bond trading quote that signals a price range where a dealer may be willing to trade.

Workout Period

A workout period is the time during which distressed or mispriced fixed-income positions are resolved, repriced, restructured, or exited.

X or XD Symbol

An explanation of the X or XD symbols used in newspapers to signify when a stock is trading ex-dividend or when a bond is trading without accrued interest.

Yankee Bond

A Yankee bond is a U.S.-dollar bond issued in the United States by a foreign borrower and subject to U.S. market rules.

Yield Curve

Benchmark curve showing how government-bond yields differ across maturities and what curve shape implies for fixed income and the economy.

Curve Arbitrage

Fixed-income relative-value strategy that seeks to profit from mispricing between different maturity points on the same yield curve.

Yield Curve Risk

Yield curve risk is fixed-income risk from nonparallel changes in the level, slope, or shape of the yield curve.

Yield on Earning Assets

Yield on earning assets measures interest income earned on loans, securities, and other earning assets held by a financial institution.

Yield Spread

Yield spread is the difference between two yields, usually quoted in basis points to compare maturity, credit, liquidity, or relative value.

Yield to Average Life

Yield to average life estimates bond yield using weighted-average principal repayment timing instead of final maturity alone.

YTC

Yield to call estimates a callable bond's annualized return if the issuer redeems it on a stated call date.

YTM

Bond return measure that links price, coupons, and principal repayment under a hold-to-maturity assumption.

YTW

Yield to worst is the lowest non-default yield from a bond's maturity, call, or other contractual redemption outcomes.

Z-Bond

A Z-bond is an accrual tranche in a mortgage or structured-credit deal that defers cash payments while interest adds to principal.

Z-Spread

Fixed-income spread measure that adds one constant spread to each point on the benchmark spot curve to match a bond's price.

Zero-Coupon Bond

A zero-coupon bond makes no periodic coupon payments and is typically bought at a discount, with return realized through accretion toward maturity value.

Zero-Coupon Convertible

A zero-coupon convertible combines no periodic coupon payments with an embedded right to convert into equity.

Revised on Sunday, June 21, 2026