Yield Maintenance

Dictionary Says

Definition of 'Yield Maintenance'

A prepayment premium that allows investors to attain the same yield as if the borrower made all scheduled mortgage payments until maturity.
Investopedia Says

Investopedia explains 'Yield Maintenance'

Yield maintenance premiums are designed to make investors indifferent to prepayment. Furthermore, It also makes refinancing unattractive and uneconomical to borrowers.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Loan

    The act of ...
  2. Refinance

    1. When a ...
  3. Yield

    The income ...
  4. Agency Bond

    A bond issued by ...
  5. Convertible Arbitrage

    An investing ...
  6. Liquidation

    1. When a ...
  7. Canada Savings Bond - CSB

    A financial ...
  8. Illiquid

    The state of a ...
  9. Secured Note

    A type of loan ...
  10. Paper Trade

    Simulated ...

Articles Of Interest

  1. Junk Bonds: Everything You Need To Know

    Don't be fooled by the name - junk bonds may be for you if you know how to analyze them.
  2. Corporate Bonds: An Introduction To Credit Risk

    Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy.
  3. Your Dividend Payout: Can You Count On It?

    We go over several telling factors that can help you answer this question and avoid losses.
  4. The Power Of Dividend Growth

    Dividends may not seem exciting, but they can certainly be lucrative. Learn more here!
  5. Bond Spreads: A Leading Indicator For Forex

    Here we examine some telling patterns in the relation between countries' interest rates and their currency pairs.
  6. This Is Your Brain On Stocks

    Find out how the human mind can hurt investors' portfolios.
  7. Should You Invest Your Entire Portfolio In Stocks?

    It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.
  8. 5 Tips For Diversifying Your Portfolio

    A diversified portfolio will protect you in a tough market. Get some solid tips here!
  9. 5 Popular Portfolio Types

    Learning how to build these portfolios will increase your investing confidence and give you financial control.
  10. How To Invest When You're Deep In Debt

    Debt is one of the biggest obstacles that prevents people from investing - but it shouldn't be.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center