Back-End Yieldfixed_income
Back-End Yield is the yield measure associated with the later cash flows of a fixed-income security, typically focusing on payments toward the end of the instrument's life rather than near-term coupons.
Terms starting with “B”
48 definitions found.
Backtestingrisk_portfolio
Backtesting is the process of evaluating a trading or investment strategy by applying its rules to historical data to estimate how it would have performed.
Backwardationderivatives
Backwardation is a futures-market condition where near-term futures prices are higher than longer-dated futures prices, resulting in a downward-sloping futures curve toward maturity. It contrasts with contango, where pri…
Balance Sheetmacro
A balance sheet is a financial statement that reports what a company owns (assets) and what it owes (liabilities), with the difference representing shareholders’ equity. It is prepared as of a specific date, making it a …
Balance Sheet Normalizationmacro
Balance Sheet Normalization is the process of returning a balance sheet to a more typical size and mix after it has been expanded due to policy actions or unusual accounting events.
Balance Sheet Runoffmacro
Balance Sheet Runoff is a monetary policy process in which a central bank reduces the size of its balance sheet by letting maturing assets roll off and by not reinvesting the proceeds, shrinking reserves and the monetary…
Balanced Fundasset_classes
A balanced fund is a pooled investment that holds a mix of stocks and bonds designed to provide growth and income within a single portfolio. It typically targets a specific asset-allocation mix (for example roughly 60% e…
Bandwagon Effectbehavioral
The bandwagon effect is a behavioral bias in which people adopt a belief or action primarily because others are doing so. It describes a pull toward conformity that can override private analysis.
Bank Secrecy Actregulation
The Bank Secrecy Act (BSA) is a U.S. law enacted in 1970 to combat money laundering by requiring financial institutions to maintain records and file reports. These reports help authorities detect and prevent illicit fina…
Base Rate Neglectbehavioral
A cognitive bias in which base rate information is ignored or underweighted when assessing probabilities, causing judgments to rely on case-specific details rather than statistical priors. Base Rate Neglect can lead to o…
Basisderivatives
Basis is the difference between the spot price of an asset and the price of a futures contract for the same asset.
Basis Pointfixed_income
A basis point (bp) is a unit of measurement equal to 1/100 of a percentage point. It is used to describe small changes in yields, rates, and spreads in fixed income.
Basis Point Valuefixed_income
Basis Point Value (BPV) is the dollar amount by which the price of a fixed-income instrument would change if yields moved by one basis point (0.01%).
Basis Riskderivatives
Basis risk is the risk that the price of a hedging instrument does not move in lockstep with the price of the asset being hedged, due to differences such as timing, location, or quality. It arises from changes in the bas…
Basis Swapderivatives
A basis swap is a type of interest-rate swap in which two parties exchange floating-rate payments based on different reference rates or tenors, with no principal exchanged. Examples include swapping payments tied to SOFR…
Basket Of Securitiesasset_classes
A basket of securities is a collection of multiple individual securities combined into a single investment, designed to represent a broader market, asset class, or investment objective. The arrangement is commonly used i…
Bear Steepenerfixed_income
A bear steepener is a movement in the fixed-income market where long-term yields rise more quickly than short-term yields, causing the yield curve to steepen.
Bearish Engulfingtechnical
A candlestick pattern in which a small-bodied candle is followed by a larger body candle that completely engulfs the previous candle's body, suggesting a potential reversal to the downside.
Bearish Haramitechnical
A two-candle candlestick pattern that forms after an uptrend, in which the first candle has a long real body and the second candle has a small real body contained within the range of the first candlestick body. It signal…
Benchmarkrisk_portfolio
A benchmark is a standard reference, typically an index or blend of indices, used to measure the performance and risk of a portfolio, fund, or investment strategy.
Benchmark Yieldfixed_income
The benchmark yield is the yield on a reference bond or index used as a standard against which other fixed-income securities are measured for relative value.
Best Bid and Offermicrostructure
Best Bid and Offer (BBO) is the top-of-book quotation showing the highest price a market participant is willing to pay to purchase a security and the lowest price at which a participant is willing to accept to trade it.
Best Bid And Offer (BBO)microstructure
Best Bid And Offer (BBO) is the top-of-book quote pair showing the highest price a buyer is willing to pay (the best bid) and the lowest price a seller is willing to accept (the best offer) at a specific moment.
Best Executionmicrostructure
Best Execution is the obligation of a broker-dealer to seek the most favorable overall terms for a customer’s order, considering price, speed, certainty of execution, and total cost across available trading venues.
Betarisk_portfolio
Beta is a measure of a security’s or portfolio’s sensitivity to overall market movements. It is calculated as the covariance of the asset’s returns with the market’s returns divided by the market’s variance.
Beta to Marketrisk_portfolio
Beta to Market is a measure of a security's or portfolio's sensitivity to movements in the overall market. It is the slope of the regression of the asset's excess returns on the market's excess returns.
Bid Sizemicrostructure
Bid size is the quantity of shares or contracts that buyers are willing to purchase at the current bid price shown on an exchange’s order book. It reflects the immediate liquidity available at the bid and the depth of th…
Bid-Ask Spreadmicrostructure
The bid-ask spread is the difference between the highest price a buyer is willing to pay (the bid) and the lowest price a seller is willing to accept (the ask) for a security, typically quoted in dollars per share.
Bitcoinasset_classes
Bitcoin (BTC) is a decentralized digital asset that uses a peer-to-peer network and a public blockchain to record transactions and manage the issuance of new units.
Blockchainasset_classes
Blockchain is a distributed ledger technology that records transactions in a chain of cryptographically linked blocks. It is maintained across a network of computers using cryptographic security and a consensus mechanism…
Bollinger Bandstechnical
Bollinger Bands are a volatility-based technical indicator that plots a central moving average with upper and lower bands set a specified number of standard deviations above and below the moving average.
Bondfixed_income
A debt security in which an issuer borrows funds from an investor and agrees to pay periodic interest and to repay the principal at a specified maturity date.
Bond Equivalent Yieldfixed_income
Bond Equivalent Yield (BEY) is the annualized yield of a bond with semiannual coupon payments. It is calculated by doubling the yield earned per half-year to facilitate comparisons with yields quoted on an annual basis.
Bond Fundasset_classes
A bond fund is a pooled investment vehicle that buys a diversified portfolio of bonds and issues shares to investors.
Bond Ladderfixed_income
A bond ladder is a fixed-income strategy that staggers bond maturities so portions mature at regular intervals, creating a predictable cash-flow profile.
Bond Ratingfixed_income
A bond rating is a formal assessment of a bond issuer's credit quality assigned by a credit rating agency, indicating the likelihood that interest and principal will be repaid on time. Ratings use letter grades to expres…
Book To Market Ratiostyles
The book-to-market ratio (B/M) is the ratio of a company’s book value of equity to its market value of equity (market capitalization). It can also be expressed on a per-share basis as book value per share divided by pric…
Book Valuefundamental
Book value is the value of a company's assets minus its liabilities as reported on the balance sheet. It effectively represents shareholders' equity.
Book Value Per Sharefundamental
Book Value Per Share (BVPS) is a financial metric that shows the equity attributable to each outstanding common share, calculated as (Total shareholders' equity minus preferred equity) divided by total common shares outs…
Break-Even Inflation Ratefixed_income
The break-even inflation rate is the inflation rate implied by the difference between yields on nominal Treasuries and Treasury Inflation-Protected Securities (TIPS) of the same maturity.
Breakeven Inflation Ratemacro
Breakeven inflation rate (BEI) is the market-implied average inflation rate over a specified horizon, derived from the spread between nominal Treasury yields and inflation-linked security yields of the same maturity.
Breakup Feecorporate
A breakup fee is a pre-agreed payment in a merger or acquisition agreement that is payable if the deal does not close under defined conditions. It is specified in the contract with details on the amount, payer, and trigg…
Brent Crudeasset_classes
Brent Crude is a North Sea light, sweet crude that serves as a global price benchmark for crude oil, used as a reference for pricing many physical shipments and futures contracts.
Bridge Financingcorporate
Bridge financing is a short-term loan or credit facility used to cover a temporary funding gap until longer-term financing or a planned cash inflow is secured.
Broadening Formationtechnical
A Broadening Formation is a price-chart pattern in technical analysis characterized by higher highs and lower lows, with two diverging trendlines that widen over time. It signals rising volatility and indecision, and bre…
Bull Flatteningfixed_income
Bull Flattening is a fixed-income market move where the yield curve flattens as long-term yields fall relative to short-term yields, often with higher prices for longer-dated bonds.
Bullish Engulfingtechnical
A two-candle candlestick pattern where a smaller-bodied candle is followed by a larger-bodied candle that completely engulfs the first, signaling a potential change in price direction.
Bullish Haramitechnical
A two-candle candlestick pattern in which the second candle's real body is contained within the first candle's real body, typically signaling a potential reversal after a downtrend.