Bonds & Fixed Income
50 terms · page 1 of 3
Accrued Interest
Interest earned on a bond since the last coupon payment but not yet paid out.
Bonds & Fixed IncomeAT1 Bond
An Additional Tier 1 bond: a perpetual, subordinated bank instrument that can be written down or converted to equity to absorb losses.
Bonds & Fixed IncomeBond
A tradable debt instrument under which the issuer borrows a sum and agrees to pay interest and repay the principal at maturity.
Bonds & Fixed IncomeBond Covenant
A condition in a debt agreement restricting the borrower's actions or requiring it to maintain stated financial ratios.
Bonds & Fixed IncomeBond Market
The market in which debt securities are issued and traded.
Bonds & Fixed IncomeBond Price
The present value of a bond's remaining cash flows, discounted at the yield the market requires.
Bonds & Fixed IncomeBond Yield
The return a bond generates, expressed as an annual percentage of the price paid for it.
Bonds & Fixed IncomeCallable Bond
A bond the issuer may redeem before maturity, at a stated price on stated dates.
Bonds & Fixed IncomeCertificate of Deposit
A negotiable short-term deposit receipt issued by a bank at a discount to face value.
Bonds & Fixed IncomeClean Price
A bond's quoted price excluding accrued interest.
Bonds & Fixed IncomeCommercial Paper
A short-term unsecured promissory note issued by a company at a discount to face value.
Bonds & Fixed IncomeConvertible Bond
A bond that can be exchanged for a fixed number of the issuer's shares at the holder's option.
Bonds & Fixed IncomeConvexity
The curvature in the relationship between a bond's price and its yield, correcting duration's straight-line estimate.
Bonds & Fixed IncomeCorporate Bond
A debt security issued by a company to borrow from investors rather than from banks.
Bonds & Fixed IncomeCoupon Rate
The annual interest a bond pays, expressed as a percentage of its face value.
Bonds & Fixed IncomeCredit Rating
An agency's opinion on an issuer's ability to meet its debt obligations, expressed on a letter scale.
Bonds & Fixed IncomeCredit Risk
The risk that a borrower fails to make interest or principal payments as promised.
Bonds & Fixed IncomeCredit Spread
The extra yield a bond offers over a government security of the same maturity, compensating for credit risk.
Bonds & Fixed IncomeCurrent Yield
A bond's annual coupon expressed as a percentage of its current market price.
Bonds & Fixed IncomeDebenture
A debt instrument issued by a company, which in India may be secured against assets or unsecured.
Bonds & Fixed IncomeDefault
A failure by a borrower to pay interest or principal when due, or a breach of another obligation under the debt agreement.
Bonds & Fixed IncomeDirty Price
The total amount a buyer pays for a bond, including accrued interest since the last coupon.
Bonds & Fixed IncomeDiscount Bond
A bond trading below its face value, because its coupon is lower than the yield the market currently requires.
Bonds & Fixed IncomeDuration
A measure of how sensitive a bond's price is to a change in interest rates.