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€STR measures unsecured overnight wholesale euro borrowing by euro-area banks and supports derivatives, floating-rate contracts, and valuation.
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€STR measures unsecured overnight wholesale euro borrowing by euro-area banks and supports derivatives, floating-rate contracts, and valuation.
The 11th District COFI was a monthly savings-institution funding-cost index used by adjustable-rate mortgages before publication ended in January 2022.
An accommodation bill is signed by a party that lends its credit to another party without directly receiving the value given for the bill.
An accrual bond capitalizes or accretes interest instead of paying all interest currently; structures include zero-coupon, capital-appreciation, and accrual tranches.
After-tax yield estimates the investment income an investor retains after applying relevant taxes to interest, dividends, or distributions.
An agency bond is debt issued by a U.S. federal agency or government-sponsored enterprise, with backing determined by the specific obligation.
An agency MBS carries a Fannie Mae, Freddie Mac, or Ginnie Mae payment guarantee while retaining prepayment, extension, rate, and market risk.
Alternative reference rates are robust benchmark replacements used after IBOR reform; each currency has its own overnight rate, conventions, term variants, and fallbacks.
Amortizable bond premium is the amount paid above a bond's remaining redemption payments that may be allocated over its life under applicable tax or accounting rules.
Amortized bond can mean a principal-amortizing security or a bond whose premium or discount is recognized through carrying value; the concepts are distinct.
Amortizing bonds repay principal gradually through scheduled payments, reducing outstanding balance and changing cash-flow and duration behavior over time.
Annuity In Arrears is a financial instrument term used in contract analysis, payoff profiles, pricing, income claims, or risk transfer.
The expected duration an investor plans to hold a particular investment before selling it.
An arbitrage bond is a state or local bond whose tax-exempt status is threatened by prohibited investment arbitrage on bond proceeds.
An ASCOT separates a convertible bond's credit component from its equity option, creating distinct fixed-income and option exposures.
Asset-backed security, ABCP, CBO, securitization vehicle, collateral, waterfall, and structured-credit terms.
Asset-backed commercial paper is short-term debt issued by a conduit and supported by financial assets, liquidity facilities, and credit enhancement.
An asset-backed medium-term note is term debt supported by specified collateral, structural protections, and offering-specific repayment rules.
An asset-backed security is a debt or beneficial-interest claim supported primarily by cash flows from a defined pool of financial assets.
Auction rate securities are long-term bonds or preferred shares whose rates reset through auctions, with liquidity depending on successful bids or a secondary sale.
Average life estimates the weighted average time until principal is repaid on amortizing, callable, or asset-backed securities.
Small-denomination bond, often exchange-listed, that can make bond exposure accessible while still carrying issuer, rate, call, and liquidity risk.
Back-loaded interest shifts more financing cost to later periods, affecting cash-flow timing, credit risk, affordability, and total return.
BBSW is Australia's short-term bank-funding benchmark, derived from eligible Prime Bank paper transactions and executable prices for use in AUD loans, securities, and derivatives.
A banker's acceptance is a time draft accepted by a bank and used in trade finance and short-term money markets.
A bearer bond is a physical debt security whose holder claims payment by possession, creating unusual custody, authenticity, tax, and compliance risks.
Benchmark Rate is a benchmark-rate concept used in loan pricing, derivatives, valuation, or interest-rate analysis.
The bid-to-cover ratio divides the par amount bid at a Treasury auction by the par amount awarded, providing one measure of auction participation.
The Bloomberg Aggregate Bond Index is a major U.S. investment-grade bond benchmark used by funds, advisors, and asset allocators.
The Bloomberg Global Aggregate Bond Index tracks global investment-grade fixed income across government, corporate, securitized, and supranational debt.
A bond is a debt security in which an issuer borrows from investors and promises interest, principal repayment, or both under stated terms.
A bond auction allocates newly issued debt through bids, establishing the issue's price, yield, and investor distribution under published rules.
A bond broker helps execute fixed-income transactions, but investors must distinguish agency commissions from principal markups and markdowns.
A bond coupon defines scheduled interest through its rate, payment amount, dates, and periods, while remaining distinct from the bond's market yield.
Bond equivalent yield places a short-term discount return or periodic bond yield on a stated annual bond-style quotation basis for comparison.
Bond index, fund, ladder, benchmark, and fixed-income portfolio-construction terms.
A bond indenture is the legal contract that sets payment terms, covenants, collateral, default provisions, and trustee duties for a bond issue.
A bond insurer provides a financial guarantee for specified principal and interest payments, adding insurer credit support without removing underlying bond risks.
Bond issuance is the process of raising debt capital by selling bonds to investors through public offerings, private placements, or auctions.
Bond laddering divides a fixed-income allocation among bonds with staggered maturity dates so principal returns at regular intervals.
The bond market connects borrowers and investors through primary issuance and secondary trading across government, corporate, municipal, and securitized debt.
Bond market equilibrium is the market-clearing price and yield at which available bond supply is held by investors given rates, credit, liquidity, and expectations.
Follow bonds from issuance and secondary-market pricing through dealer execution, repo financing, clearing, settlement, and coupon stripping.
Bond maturity identifies when principal is scheduled for repayment and distinguishes the maturity date, original maturity, and remaining term used in fixed-income analysis.
A bond trades at par, at a premium, or at a discount according to how its price compares with par value, affecting yield and redemption analysis.
A bond quote communicates a bid, offer, price, yield, or spread for a stated security and size, but may be firm, subject, or merely indicative.
A bond rating is an agency's credit-risk opinion on an issuer or debt obligation, expressed through a scale such as AAA to D or Aaa to C.
Bond trusts pool fixed-income securities through a trust structure, but portfolio management, redemption, maturity, fees, and trading depend on the specific wrapper.
Bond valuation estimates dirty and clean price from discounted cash flows, benchmark rates, credit spread, options, accrued interest, and market inputs.
Bond yield is a return quotation linking price with coupon, principal, timing, and redemption assumptions for fixed-income comparison.
Bond-market terms for fixed-income securities, yields, duration, credit risk, issuer types, and portfolio use.
Build America Bonds were taxable municipal bonds issued in 2009 and 2010 with federal tax-credit or direct-payment subsidy features.
Bond structure that repays principal in one lump sum at maturity while paying coupon interest during the life of the issue.
Call money is short-term wholesale funding repayable on demand or at very short notice, often overnight.
A callable bond gives the issuer a contractual right to redeem the bond before maturity at specified dates and prices.
A collateralized bond obligation is a CDO backed primarily by bonds and divided into senior, mezzanine, and first-loss tranches.
A collateralized debt obligation pools cash or synthetic credit exposures and allocates cash flows and losses among senior, mezzanine, and equity tranches.
A collateralized loan obligation pools leveraged corporate loans and allocates cash flows and losses among rated debt tranches and equity.
A collateralized mortgage obligation is a multi-class mortgage security that reallocates principal and interest among tranches with different cash-flow timing.
A CMBS is supported by commercial mortgages and analyzed through property cash flow, leverage, balloon maturity, servicing, and tranche risk.
Contingent convertible bonds absorb bank losses through mandatory conversion or principal write-down when specified capital or non-viability triggers occur.
The conversion price is the price per share used to determine how many shares a convertible security delivers on conversion.
Convertible arbitrage compares a convertible security with the issuer's stock, credit risk, volatility, and hedge cost.
A convertible bond is debt that can convert into another security, usually the issuer's common shares, under stated price and ratio terms.
Convexity measures curvature in the bond price-yield relationship and refines duration-based rate-risk estimates.
Core floating-rate note terms for FRNs, VRNs, benchmark indexes, quoted spreads, and coupon reset mechanics.
Core municipal revenue bond structures covering pledged revenues, municipal revenue bonds, and special assessment bonds.
A corporate bond is company-issued debt whose value depends on promised cash flows, seniority, covenants, credit quality, rates, and liquidity.
Bond coupon and interest-payment structures, including fixed coupons, deferred interest, PIK interest, zero-coupon bonds, and irregular coupon periods.
Credit spread is the yield or model-implied spread over a reference benchmark that reflects credit, liquidity, uncertainty, and bond-specific risks.
Current refunding refinances outstanding bonds when the prior bonds are redeemed immediately or within the current-refunding window.
Current yield is annual coupon income divided by a bond's current market price, providing a quick income measure that excludes redemption and price-return effects.
A debt security is a tradable borrowing instrument that gives investors contractual claims to interest, principal, or both.
A deferred interest bond delays cash interest, so accrued interest, accretion, tax timing, and issuer credit risk drive analysis.
Embedded flexibility in futures or deliverable contracts over delivery timing, eligible instrument, location, quality, or quantity.
A dim sum bond is a renminbi-denominated bond issued in Hong Kong's offshore RMB market, with distinct credit, CNH, liquidity, and settlement risks.
A discount market is a short-term money market where bills and other instruments trade below face value and mature at par.
Dollar-based bond risk measure showing how much a position's value should change for a one-basis-point move in yield.
A dual currency bond pays interest, principal, or both in currencies that differ from the bond's denomination, embedding foreign-exchange risk in its return.
Interest-rate sensitivity measure showing how strongly a bond's price should react to yield changes.
Duration, convexity, curve-risk, holding-period, and interest-rate sensitivity terms for fixed income.
Effective duration estimates bond price sensitivity when embedded options or prepayments can change expected cash flows.
EMBI is JPMorgan's hard-currency emerging-market sovereign bond index family, used to measure returns, yields, spreads, and benchmark exposure.
An endorsement is a signature or instruction placed on a negotiable instrument to transfer it, identify a new payee, or restrict how it may be used.
EONIA was the euro overnight index benchmark; it became €STR plus 8.5 basis points during transition and was discontinued on January 3, 2022.
An equipment trust certificate finances specified equipment through trust, lease, note, and collateral arrangements whose priority and recovery require analysis.
EURIBOR is EMMI's euro unsecured term benchmark, calculated for five tenors through a hybrid transaction-based methodology and used in loans, bonds, and derivatives.
A Eurobond is an international bond issued outside a single domestic market, commonly distributed cross-border and settled through international systems.
A Eurodollar bond is a U.S.-dollar bond issued in the offshore international market rather than the U.S. domestic bond market.
The European sovereign debt crisis linked government refinancing stress, bank balance sheets, weak growth, and euro-area institutional constraints after the global financial crisis.
An exchange-traded note is unsecured debt linked to a benchmark. Learn how ETN indicative value, market price, fees, credit risk, calls, and resets work.
An exotic currency bond is an informal label for debt denominated in a less liquid or less widely used currency, requiring separate FX, credit, and market analysis.
Term-structure theory stating that longer-maturity yields mainly reflect expected future short-term interest rates.
A fallen angel is a bond downgraded from investment grade to speculative grade, a change that can affect price, spread, liquidity, and index eligibility.
Fitch Ratings assigns credit opinions using symbols such as AAA, BBB-, and BB+; learn how to read the scale, status, scope, and limitations.
Fixed income covers debt and debt-like investments whose contractual or formula-based cash flows create interest-rate, credit, liquidity, and reinvestment exposure.
The Fixed Income Clearing Corporation is DTCC's central counterparty for eligible U.S. government and mortgage-backed securities transactions.
A fixed-income security provides scheduled interest, coupon, or principal payments under defined contractual terms.
A fixed-rate bond or note pays a coupon that does not reset, creating predictable scheduled interest but market-price exposure to rates, credit, and inflation.
Yield-curve shape in which short- and long-maturity bonds offer similar yields, often signaling transition or uncertainty.
Floating-rate, variable-rate, and inflation-linked bond structures that adjust coupons, principal, or redemption values using rates or price indexes.
A floating-rate note (FRN) pays a coupon that resets against a benchmark, reducing fixed-rate duration without eliminating credit, spread, or liquidity risk.
Fixed-income guide to floating-rate notes, variable-rate securities, demand obligations, and capped or renewable reset structures.
A foreign bond is issued by a nonresident borrower in a domestic market and usually denominated in that market's currency.
An FCCB is foreign-currency debt that can convert into the issuer's shares, combining credit, currency, equity, and dilution exposure.
Future-period interest rate implied by today's yield curve, with calculation methods, interpretation limits, and links to rate derivatives.
G-spread is a bond's yield minus the interpolated government-curve yield at the same maturity; learn the formula, benchmark choices, and limitations.
Municipal bond pledge terms covering general obligation bonds, unlimited-tax support, limited-tax constraints, and moral obligation structures.
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.
A gilt is a sterling-denominated UK government bond issued by HM Treasury as a conventional or index-linked security.
The gilt repo market is the UK secured funding market where cash is borrowed and lent against gilt collateral.
A global bond is placed simultaneously in domestic and international markets, using coordinated documentation and settlement access to reach investors broadly.
A government bond is debt issued by a national or subnational public authority, with risk shaped by currency, law, maturity, and payment terms.
Government debt is money a national, regional, state, or local public authority owes under bonds, bills, loans, and other debt instruments.
A green bond finances eligible environmental projects through a defined use-of-proceeds framework while retaining ordinary bond credit and market risks.
A guaranteed bond is supported by another party's contractual payment promise, whose scope, ranking, release terms, and credit quality require review.
Held-to-maturity securities are debt investments a company intends and is able to hold until maturity.
A high-yield bond is rated below investment grade and offers a higher stated yield alongside greater default, recovery, liquidity, and refinancing risk.
HIBOR is a family of Hong Kong dollar benchmarks derived from panel-bank estimates of prime-bank deposit offer rates in the interbank market.
Yield-curve shape in which intermediate maturities yield more than both short and long maturities.
IBOR is a family label for interbank offered-rate benchmarks; the exact currency, tenor, methodology, administrator, and fallback determine how a contract behaves.
An income bond pays interest only when earnings or contract conditions allow, making cash flow contingent and credit risk central.
Indexed securities link payments, principal, or returns to an index such as inflation, rates, commodities, or equity performance.
Inflation-indexed securities adjust principal, interest, or redemption values with inflation measures to reduce purchasing-power risk.
Inflation-linked and index-linked fixed-income securities that adjust principal, coupons, or redemption values using price indexes or other reference measures.
Compare government inflation-linked securities by index, principal adjustment, marketability, tax timing, and maturity protection.
The interbank market is the wholesale network through which banks exchange short-term funding, reserves, collateral, currencies, and related financial exposures.
An interbank rate is the interest rate on a specified bank-to-bank funding transaction or benchmark, defined by currency, tenor, collateral, market, and methodology.
International bond investing adds debt issued across countries, currencies, markets, and legal systems to a portfolio, with distinct credit and FX risks.
An interpolated yield curve estimates yields between observed maturities, creating a smoother curve for pricing and rate-risk analysis.
Yield-curve shape in which shorter maturities yield more than longer maturities, often interpreted as a slowdown warning.
Debt securities marketed as notes, where maturity, issuer, registration, structure, and credit support determine the real fixed-income risk.
An investment-grade bond has a rating at or above an agency's investment-grade boundary, but it still carries credit, rate, liquidity, and price risk.
A Japanese Government Bond is yen-denominated sovereign debt issued by Japan, with terms spanning bills, fixed-rate, inflation-linked, and retail securities.
JIBAR is a South African rand term benchmark based on contributing banks' negotiable-certificate-of-deposit quotes and scheduled to cease after 2026.
Bond backed by more than one obligor or guarantor, where repayment analysis depends on each party's legal obligation and credit strength.
Yield-curve sensitivity measure showing how exposed a bond or portfolio is to one specific maturity point on the curve.
A Kiwi Bond is New Zealand dollar fixed-term debt issued by the Crown directly to qualifying New Zealand resident investors.
The Latin American debt crisis began in 1982 when foreign-currency bank debt, rising global interest rates, weaker exports, and lost refinancing access created widespread payment stress.
Liberty Bonds were U.S. government war-finance bonds sold during World War I, important for public debt history and war-bond comparisons.
LIBID is a historical London interbank bid-rate label; its exact source, tenor, calculation, and fallback depend on the legacy contract or data definition.
LIBOR was a family of unsecured term bank-funding benchmarks; all settings have ceased, but legacy contracts and historical analysis still require careful fallback review.
A LIBOR curve organized historical LIBOR tenor fixings or projected future LIBOR cash flows; it is now a legacy curve requiring date, currency, and methodology checks.
The LIBOR scandal involved false benchmark submissions intended to benefit trading positions or influence perceptions of bank funding stress.
LIBOR was a forward-looking term bank-funding benchmark; SONIA is an active transaction-based overnight sterling rate commonly compounded in arrears.
A liquidation preference gives a preferred equity class priority to specified proceeds before junior equity participates in an exit or liquidation.
Term-structure theory arguing that longer maturities usually need extra yield because investors prefer liquidity and shorter commitments.
A long coupon is an irregular coupon period longer than the standard interval, affecting accrued interest, first payments, and yield calculations.
Macaulay duration measures the present-value-weighted average timing of a bond's cash flows.
Term-structure theory arguing that different maturity zones are priced by separate investor demand rather than one unified expectations curve.
MBS vintage groups mortgage collateral or securities by origination or issuance period to compare underwriting, seasoning, rates, and performance.
A medium-term note is a debt security often issued under a program with flexible maturities, coupon structures, and pricing supplements.
Minimum Lending Rate was the Bank of England's published lender-of-last-resort rate for the discount market from October 1972 until its suspension in August 1981.
Modified duration estimates the percentage price change of a fixed-income security for a small change in yield.
Money at call and short notice is very short-term wholesale lending repayable on demand or within a short notice period.
Money market instruments are short-term funding and cash-placement instruments used by governments, banks, companies, funds, and treasury desks.
Moody's Ratings assigns credit opinions using symbols such as Aaa, Baa3, and Ba1; learn how to read the scale, status, scope, and limitations.
A mortgage bond is issuer debt secured by a mortgage lien on specified real property and related fixed assets under a mortgage indenture.
A mortgage pass-through security gives investors pro rata shares of pool principal and interest after servicing, guarantee, and other stated fees.
A mortgage pool is a defined collection of mortgage loans assembled for securitization, guarantee, servicing, or investor cash-flow analysis.
Mortgage pooling is the process of selecting and combining eligible mortgage loans for securitization, guarantee, servicing, or structured funding.
A mortgage-backed security represents a claim on cash flows from mortgage loans, with risk shaped by the collateral, guarantee, payment structure, and price.
A multiple-issuer mortgage pool combines loan packages from more than one issuer into one mortgage-backed security collateral pool.
A municipal advisor gives covered advice on municipal securities or municipal financial products and may owe fiduciary duties to a municipal entity client.
A municipal bond is debt issued by a state, local government, public authority, or similar issuer to finance public projects or operations.
Municipal bond basics covering municipal securities, tax-exempt interest, private-activity bonds, and legal-opinion status.
Municipal, public-purpose, revenue, tax-exempt, savings, and retail government bond terms used in fixed-income analysis.
Negative arbitrage occurs when invested proceeds earn less than the borrowing or refunding cost, reducing financing efficiency.
A negative bond yield means the security's price and scheduled cash flows imply a nominal yield below zero under a stated convention and holding assumption.
Negative convexity is unfavorable bond price-yield curvature where upside is constrained as yields fall, often because calls or prepayments become more likely.
A negotiable instrument is a signed payment document that can be transferred so a qualifying holder may enforce the payment obligation.
A nominal bond pays contractual currency amounts without inflation indexation; understand valuation, real returns, breakeven inflation, and risks.
A non-participating preference share receives its stated priority amount but does not also share in residual value unless it converts to common equity.
Upward-sloping yield curve in which longer maturities offer higher yields than shorter maturities of similar credit quality.
Off-the-run Treasuries are seasoned U.S. Treasury issues that are no longer the newest benchmark securities in their maturity sectors.
The on-the-run Treasury yield curve uses the most recently issued Treasury securities to show current benchmark yields across maturities.
Option-adjusted spread is the model-solved spread over benchmark rate paths after accounting for embedded calls, puts, or prepayment behavior.
Order paper is a negotiable instrument payable to a named person or that person's order.
Original face is an MBS security's principal amount at issuance and the fixed reference amount used with pool factor to calculate current face.
Overlapping debt estimates the share of debt from other public jurisdictions supported by taxpayers or property within a focal government's boundaries.
Overnight money is very short-term institutional funding borrowed and repaid by the next business day.
Overnight MIBOR is an Indian rupee benchmark calculated from eligible unsecured call-money transactions executed on the NDS-CALL platform.
An overnight rate is the annualized interest rate for funds borrowed for one business day; it may be secured, unsecured, market-based, administered, or policy-targeted.
A par yield curve shows the coupon rates that would price hypothetical bonds at face value across maturities, derived from discount factors under stated conventions.
Payment-in-kind bonds let issuers pay interest with additional debt instead of cash, preserving liquidity while increasing leverage and credit risk.
Per-capita debt divides a defined government-debt measure by the corresponding population to compare debt scale across places or periods.
A permanent interest-bearing share is a deeply subordinated deferred share historically issued by a UK building society as long-term capital.
A perpetual bond has no scheduled maturity date, so value depends on coupon durability, issuer credit, call terms, and required yield.
An MBS pool factor is current principal divided by original principal and is used to convert original face into remaining current face.
Preference share capital is financing raised through shares with priority or negotiated rights that can be classified as equity, liability, or a compound instrument.
Preferred, senior, and hybrid capital terms explain claim priority, liquidation waterfalls, distribution rights, and debt-equity features.
Private activity bonds are municipal bonds whose proceeds materially benefit private users, making tax qualification and conduit credit analysis central.
A promissory note is a signed written promise by a maker to pay a specified sum on demand or at a defined future time.
A putable bond gives the holder a contractual right to require early repurchase at specified dates and prices.
A REMIC is a U.S. federal tax election for a qualifying fixed pool of mortgages with regular interests and one residual-interest class.
Real yield measures bond yield in purchasing-power terms or the quoted yield on inflation-linked debt; understand TIPS, breakevens, and risks.
Redemption yield is the price-implied annualized rate from coupons and principal paid on a specified redemption date.
A reference bank is a financial institution named in a contract to supply a base rate or market quotation under specified benchmark and fallback procedures.
A reference index is an external benchmark named in a contract or valuation rule; floating rates commonly combine the index with a fixed margin and applicable caps.
Municipal issuance guidance covering advisor roles, current and advance refunding, call timing, escrow mechanics, and financing evidence.
A repo transaction is a short-term secured funding trade where securities are sold for cash and later repurchased.
A reset bond pays a stated rate for one period and recalculates its coupon on specified reset dates using the contract's benchmark and spread.
An RMBS is supported by residential mortgage cash flows, with performance shaped by borrower credit, prepayments, servicing, and deal structure.
Municipal bond terms for project-backed repayment sources, pledged revenues, assessments, utilities, hospitals, housing, and industrial facilities.
Municipal bond terms for project-backed revenue pledges, special assessments, public authorities, taxable programs, and historical public-purpose debt.
A revenue bond is repaid primarily from a specific project's, facility's, or enterprise's revenues rather than a broad general tax pledge.
Roll-down return estimates the bond price effect of aging to a shorter curve point under an unchanged-curve assumption.
S&P Global Ratings assigns credit opinions using symbols such as AAA, BBB-, and BB+; learn the scale, modifiers, scope, status, and limitations.
The S&P U.S. Aggregate Bond Index measures broad U.S. investment-grade bond market performance for benchmarking and portfolio comparison.
A sale and repurchase agreement is the formal repo contract structure for selling securities today and buying them back later.
A U.S. savings bond is a nonmarketable Treasury security for retail savers, with interest, redemption, and tax rules set by Treasury.
Retail government bond terms covering U.S. savings bonds, Series bonds, education exclusions, Patriot Bonds, and war-bond history.
The secondary mortgage market is where existing mortgages and mortgage-backed securities are sold, pooled, securitized, financed, and traded.
A secured bond has a lien on specified collateral, but recovery depends on collateral value, lien priority, documentation, and enforcement costs.
Senior capital is a financing layer with priority over specified junior capital, based on liens, contracts, entity structure, and applicable law.
Senior equity is an ownership class that ranks ahead of specified junior equity for dividends, liquidation proceeds, or negotiated distributions.
A senior security has priority over specified junior securities for payment or recovery, based on contract, collateral, entity structure, and law.
A serial bond issue repays principal through scheduled maturities over time, often helping municipalities match debt service to project life or revenues.
Series bonds are issued in groups with different maturities, rates, or terms under the same financing program.
A Series EE bond is a nonmarketable U.S. savings bond with fixed-rate accrual and Treasury-specific redemption rules.
A Series I bond is a nonmarketable U.S. savings bond whose composite rate combines a fixed component with an inflation component.
Short-, intermediate-, and long-term bond categories group securities by maturity while highlighting different rate, reinvestment, credit, and liquidity exposures.
SIBOR was Singapore's term interbank offered-rate benchmark; all tenors have ceased, and Singapore-dollar contracts transitioned to the SORA framework.
Sinking fund provisions require scheduled retirement of part of a bond issue before final maturity, changing cash-flow, redemption, and reinvestment risk.
SOFR measures overnight borrowing secured by U.S. Treasury securities and is used in dollar loans, bonds, derivatives, and valuation.
SONIA is the Bank of England's transaction-based sterling overnight benchmark, used through daily rates, compounded averages, and the SONIA Compounded Index.
Sovereign credit ratings are external opinions about a government's relative credit risk, differentiated by agency, obligation, currency, term, outlook, and methodology.
Sovereign debt is money a national government owes under bonds, bills, loans, and other obligations governed by domestic or foreign legal frameworks.
A special purpose vehicle is a legally distinct, limited-purpose entity used to hold assets, issue claims, or isolate a financing transaction.
A specified pool trade identifies the exact agency MBS pools at trade time so investors can price collateral characteristics and prepayment behavior.
A straight bond pays fixed coupons and principal without embedded conversion, call, put, or warrant features, making its cash flows simpler to value.
Structured finance reshapes asset cash flows and risk through special-purpose entities, tranches, enhancement, triggers, and payment waterfalls.
A structured investment vehicle was a leveraged funding entity that invested in longer-term assets using shorter-term debt and subordinated capital.
Sukuk are Sharia-compliant investment certificates whose cash flows and investor rights depend on specified assets, contracts, recourse, and legal structure.
A tap issue adds fungible securities to an existing bond line, often outside the issuer's normal auction or syndication schedule.
Tax-equivalent yield converts a tax-exempt yield into the pretax yield a taxable investment would need to provide the same simplified after-tax income.
A tax-exempt bond pays interest that may be excluded from regular federal income tax, making after-tax yield central to analysis.
Tax-exempt yield measures investment income represented as exempt from a specified tax and must be compared using consistent yield and risk assumptions.
Public-purpose bond terms covering taxable municipal programs, Build America Bonds, Liberty Bonds, and historical government borrowing campaigns.
A taxable bond produces interest or discount income subject to applicable tax rules, so comparisons require after-tax yield and security-specific treatment.
A TBA transaction is an agency MBS forward trade that fixes general security terms while allowing eligible pools to be identified before settlement.
Bond issue or maturity bucket whose principal comes due on one stated date, often analyzed with call and sinking-fund provisions.
Extra yield investors demand for holding longer maturities instead of repeatedly rolling short-term instruments.
TIBOR is a family of Japanese yen term benchmarks based on reference-bank estimates of prevailing unsecured call-market rates.
TONA is Japan's uncollateralized overnight call rate benchmark, used in yen derivatives, floating-rate contracts, and LIBOR transition.
A total bond fund seeks broad bond-market exposure, but its benchmark, duration, credit mix, fees, and exclusions determine the actual portfolio.
Coupon-paying bond structure with periodic interest payments and principal repayment, central to fixed-income income and yield analysis.
A Treasury bill is short-term U.S. government debt sold at a discount or at par, with face value paid at maturity.
Treasury bills and commercial paper are short-term debt instruments, but they differ by issuer, credit risk, liquidity, maturity, and use.
A Treasury bond is 20- or 30-year marketable U.S. government debt with a fixed rate and semiannual interest payments.
Treasury Inflation-Protected Securities adjust principal with CPI-U and pay fixed-rate interest on the adjusted amount.
A Treasury note is 2- to 10-year marketable U.S. government debt with a fixed rate and semiannual interest payments.
Treasury securities are marketable U.S. government obligations issued as bills, notes, bonds, TIPS, and floating-rate notes.
Treasury STRIPS are zero-coupon securities created by separating eligible Treasury principal and interest payments into tradable claims.
Treasury yield is the market-implied return on a U.S. Treasury security or a standardized point on the Treasury yield curve under a stated convention.
Trust preferred securities, including legacy QUIPS structures, are trust-issued hybrid instruments funded by deeply subordinated sponsor debt.
U.S. savings bond series, including Series EE and Series I bonds, with different accrual, redemption, and tax features.
Ultra-short bond funds hold short-maturity debt but retain NAV, credit, liquidity, fee, and interest-rate risk.
Unamortized bond discount is the remaining below-principal amount not yet accreted into a bond's carrying amount or adjusted issue price.
Unamortized bond premium is the portion of an above-principal bond amount that remains after cumulative amortization at a measurement date.
Hypothesis that forward rates are unbiased predictors of future short-term rates, with no systematic term-premium distortion.
The underwriting spread is the difference between what underwriters pay an issuer and what investors pay for a new security.
An unsecured bond has no lien on specified collateral, so recovery depends on obligor value, seniority, guarantees, covenants, and competing claims.
A variable-rate certificate of deposit pays interest that can reset with market rates or a stated benchmark, changing income over the CD term.
Variable-rate securities and municipal demand obligations with benchmark resets, tender features, remarketing, and liquidity-support mechanics.
A variable-rate demand obligation (VRDO) is a municipal security with periodic rate resets and a put or tender feature under stated terms.
A variable-rate security is debt whose coupon changes through a benchmark, formula, auction, or remarketing process rather than remaining fixed.
The Vasicek model represents the instantaneous short rate as a one-factor Gaussian process with constant volatility and mean reversion.
Weighted average coupon is the mortgage pool's balance-weighted borrower interest rate and differs from the MBS coupon, yield, and market price.
Weighted average credit rating summarizes a bond portfolio under a stated mapping and weighting method, but can conceal concentration and nonlinear credit risk.
Weighted average maturity measures a portfolio's average time to maturity, weighted by each holding's share of assets or principal.
Weighted average rating factor converts portfolio credit ratings to agency-specific numerical factors and averages them by collateral balance.
A window guaranteed investment contract accepts scheduled institutional contributions during a defined period under stated crediting, withdrawal, and maturity terms.
A workable indication is a dealer's revisable statement of a potential municipal-bond purchase price, not a firm bid or completed trade.
A workout period is the case-specific time used to resolve a troubled loan or bond through amendment, forbearance, refinancing, restructuring, enforcement, or repayment.
X and XD can flag ex-dividend or ex-interest status, but their exact meaning depends on the market-data source and security type.
Yield basis identifies how a bond is quoted and its yield calculated, including redemption date, compounding, day count, price, and settlement assumptions.
Benchmark curve showing how government-bond yields differ across maturities and what curve shape implies for fixed income and the economy.
Fixed-income relative-value strategy that seeks to profit from mispricing between different maturity points on the same yield curve.
Yield curve risk is fixed-income risk from nonparallel changes in the level, slope, or shape of the yield curve.
Yield pickup is the extra quoted yield from an alternative investment, measured on a consistent basis and weighed against costs, taxes, and additional risk.
Yield spread is the difference between two stated yields, used to compare curves, credit, liquidity, options, and relative value.
Yield to average life evaluates yield using weighted-average principal repayment timing rather than final legal maturity alone.
Yield to call is the price-implied annualized rate if a callable bond is redeemed on a specified call date at its call price.
Yield to maturity is the price-implied annualized rate for a bond's scheduled coupons and principal through final maturity.
Yield to worst is the lowest applicable non-default yield among a bond's maturity and contractual early-redemption scenarios.
A Z-bond is a CMO accrual tranche that receives no current cash while interest compounds into principal and earlier tranches are paid down.
Z-spread is the constant spread added to each benchmark spot rate so an option-free bond's discounted cash flows equal its market price.
A zero-coupon bond makes no periodic coupon payments and is typically bought at a discount, with return realized through accretion toward maturity value.