Public debt, also known as government debt or sovereign debt, refers to the borrowings by governments to finance expenditures not covered by current tax revenues. It is accumulated by the government through the issuance of securities such as bonds and is an essential part of fiscal policy and economic management.
A redeemable bond, also known as a callable bond, is a type of bond that the issuer can redeem before its maturity date at a predefined call price.
Redemption refers to the repayment of shares, stocks, debentures, or bonds as specified at the time of issue, often including a fixed redemption date and amount.
The redemption date refers to the specific date on which a bond or other fixed-income security is repaid by the issuer, fulfilling the terms of the debt agreement.
The redemption price is the predetermined value at which a bond or preferred stock can be repurchased or redeemed by the issuer before its maturity date, commonly referred to as the call price.
Redemption yield, also known as yield to maturity, is a measure of the annual return an investor can expect to earn if a bond is held until maturity. It factors in both the bond's current market price and its interest payments.
A registered bond is a type of bond that is recorded in the name of the holder on the books of the issuer or the issuer's registrar. It can be transferred to another owner only when endorsed by the registered owner. This is in contrast with a coupon bond.
Running yield, often referred to simply as yield, is a financial metric used to measure the annual income generated by an investment relative to its current market price.
Safekeeping refers to the storage and protection of assets, valuables, or documents to ensure their security and proper management. It ranges from using a bank safe deposit box to utilizing services from financial institutions like banks and brokerage firms.
A Samurai bond is a bond issued in Japan by a non-Japanese entity, denominated in Japanese yen. It enables foreign issuers to access the Japanese capital market.
A U.S. government bond issued in denominations ranging from $50 to $10,000, traditionally issued at a discount and redeemed at face value upon maturity.
Scrip refers to a certificate, written document, or token that ultimately serves as evidence of ownership of stocks, shares, or bonds. It can also be issuance documentation when additional shares are provided to current shareholders, known as a scrip issue.
Debt obligation, including bonds, that is guaranteed by the pledge of assets or other collateral.
Financial instruments that represent ownership or debt and provide the holder with a right to receive financial returns or an interest in the profits or assets of an enterprise.
A serial bond is a bond issue, usually of a municipality, with various maturity dates scheduled at regular intervals until the entire issue is retired. Each bond certificate in the series has an indicated redemption date.
Serial bonds are a type of bond issue where parts of the total amount mature at different intervals over a period, rather than all at once on one maturity date. This structure allows issuers to spread out the repayment burden and provides investors with a series of maturing investments over time.
Series bonds are a group of bonds issued at different times with different maturities but under the same indenture.
A short bond, also known as a short-term bond, refers to a bond with a short maturity period, generally meaning one year or less. These bonds are often classified as current liabilities under the accounting definition of short-term debt.
A limited reserve set aside systematically by an issuer over time to repay debt or to replace an asset in the future.
The SIX Swiss Exchange is Switzerland's primary stock exchange, facilitating trade in a variety of securities including stocks, bonds, and derivatives. It is renowned for its efficiency and innovative trading technology.
An individual investor who buys small amounts of stock or bonds, often in odd-lot quantities; also called a retail investor.
Annual publication by Ibbotson & Associates that provides long-term historical data on various financial instruments including stocks, bonds, treasury bills, and inflation.
A stripped coupon refers to a small minimum trading unit of a larger security, where the principal amount and the interest payments have been separated and sold as individual zero-coupon securities.
STRIPS (Separate Trading of Registered Interest and Principal of Securities) are zero-coupon bonds created by separating the interest and principal components of a bond or note and selling them individually.
Systemic risk, also known as market risk or systematic risk, refers to the part of a security’s risk that is common to all securities within the same general class and cannot be eliminated by diversification. The measure of systemic risk for individual stocks is the Beta Coefficient.
A type of bond for which the entire principal amount matures on a single date rather than in installments over multiple dates.
The unamortized bond discount represents the difference between a bond's face value (par value) and the proceeds received from the bond's sale by the issuing company, less the portion that has been amortized over time.
An underlying security refers to the financial instrument (like stocks, bonds, commodities, or indexes) on which derivatives such as options, futures, or other securities are based. It is the asset that must be delivered when specific financial contracts, like put options or call options, are exercised.
A Unit Investment Trust (UIT) is an investment vehicle registered with the SEC under the Investment Company Act of 1940. It purchases a fixed portfolio of securities, which may include corporate, municipal, or government bonds, mortgage-backed securities, common stock, or preferred stock.
The term 'Unit of Trading' refers to the normal number of shares, bonds, or commodities that constitute the minimum unit of trading on an exchange.
An unsecured debenture is a type of debt instrument that is not backed by any specific collateral, relying instead on the creditworthiness and reputation of the issuer.
Unsecured Loan Stock (ULS) is a type of loan stock that is not backed by any assets or collateral, making it riskier for lenders compared to secured loan stocks.
Upside potential refers to the amount of upward price movement an investor or an analyst expects of a particular stock, bond, or commodity.
An uptrend refers to the general upward direction in the price of a stock, bond, commodity futures contract, or overall market, characterized by higher highs and higher lows over a period.
A comprehensive overview of Variable-Rate Notes (VRNs), highlighting their characteristics, benefits, and implications for investors.
The term 'wallpaper' has dual significance: in finance, it refers to worthless securities like bankrupt stocks and bonds, and in computing, it denotes a picture or graphic used as a desktop background.
The term 'When Issued' (WI) refers to a transaction made conditionally on the basis that a security, although authorized, has not yet been issued or made available for trading.
A visual representation that plots the yields of bonds with varying maturities. It is an essential tool for understanding market sentiment and interest rate expectations.
Yield spread refers to the difference in yields between various issues of securities, often related to issues with different credit qualities. It is a key metric in the bond market, comparing securities that don't share identical maturity and quality.
Yield to Average Life (YAL) is a calculation used to estimate the expected return of a bond, assuming that parts of the bond issue are retired systematically prior to its final maturity date. This is common in cases where a sinking fund is involved.
Yield to Maturity (YTM) is the total return anticipated on a bond if it is held until it matures. YTM takes into account the bond's current market price, par value, coupon interest rate, and the time to maturity.
Yield to Maturity (YTM), often referred to as Gross Redemption Yield, is a crucial financial metric for investors, reflecting the total return expected on a bond if held until it matures.
