Fixed Income Bond Terms

  1. AAA

  2. Accrual Bond

  3. Accrued Interest

  4. Accrued Market Discount

  5. Accumulation Bond

  6. Amortizable Bond Premium

  7. And Interest

  8. Annual Percentage Yield - APY

  9. At Par

  10. Average Effective Maturity

  11. Balloon Interest

  12. Balloon Maturity

  13. Barbell

  14. Bearer Bond

  15. Beep

  16. Below Par

  17. Bid Wanted

  18. Bond Covenant

  19. Bond Equity Earnings Yield Ratio - BEER

  20. Bond Equivalent Yield - BEY

  21. Bond Laddering

  22. Bond Power

  23. Bond Yield

  24. Call Privilege

  25. Call Provision

  26. Call Risk

  27. Callable Bond

  28. Constant Yield Method

  29. Coupon Equivalent Rate - CER

  30. Coupon Equivalent Yield - CEY

  31. Credit Rating

  32. Current Maturity

  33. Current Yield

  34. Curve Steepener Trade

  35. Cushion Bond

  36. Debenture

  37. Direct Bidder

  38. Discount Bond

  39. Discount Yield

  40. Discounting

  41. Dual Currency Bond

  42. Duration

  43. Earnings Yield

  44. Effective Yield

  45. Ex Coupon

  46. Fixed-Rate Bond

  47. Flat

  48. Flat Bond

  49. Flat Yield Curve

  50. Humped Yield Curve

  51. Impact investing

  52. Inactive Bond Crowd

  53. Income Bond

  54. Indirect Bidder

  55. Interest Rate Sensitivity

  56. Inverted Yield Curve

  57. Liquid Yield Option Note - LYON

  58. Market Discount

  59. Maturity Date

  60. Maturity Gap

  61. Minimum Yield

  62. Nominal Yield

  63. Normal Yield Curve

  64. Obligation

  65. Par

  66. Par Value

  67. Par Yield Curve

  68. Parity Bond

  69. Performance Bond

  70. Perpetual Bond

  71. Premium

  72. Premium Bond

  73. Promotional CD rate (Bonus CD rate)

  74. Pull To Par

  75. Pure Yield Pickup Swap

  76. Put Bond

  77. Put Provision

  78. Rate Trigger

  79. Realized Yield

  80. Redemption

  81. Refunded Bond

  82. Registered Bond

  83. Required Yield

  84. Retractable Bond

  85. Riding the Yield Curve

  86. Running Yield

  87. SEC Yield

  88. Secured Bond

  89. Semi-Annual Bond Basis - SABB

  90. Serial Bond

  91. Serial Bond With Balloon

  92. Series I Bond

  93. Short Coupon

  94. Sinkable Bond

  95. Sinker

  96. Sinking Fund

  97. Sinking Fund Call

  98. Step-Up Bond

  99. Straight Bond

  100. Strip

Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an 80% loan-to-value ratio, the second position lien has a 10% loan-to-value ratio and the borrower makes a 10% down payment. 80-10-10 mortgage transactions are piggy-back mortgage transactions, and are frequently used by borrowers to avoid paying private mortgage insurance.
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific benchmark, such as a SPDR. Unlike actively managed ETFs, passive ETFs are not managed by a fund manager on a daily basis.
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another market so that it balances out. So when examining a specific market, if all other markets are in equilibrium, Walras' Law asserts that the examined market is also in equilibrium.
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
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