Yieldfixed_income
Yield is the annualized return earned from a fixed‑income security, expressed as a percentage of its price or par value. In fixed income, yield can refer to several measures that estimate return under different assumptio…
Terms starting with “Y”
11 definitions found.
Yield Curvefixed_income
The yield curve is a graph that plots the yields of bonds with the same credit quality across a range of maturities at a given point in time, typically using U.S. Treasury securities. It shows how longer-term yields comp…
Yield Curve Flatteningfixed_income
Yield curve flattening is the narrowing of the yield spread between shorter- and longer-term bonds of the same credit quality, typically measured by the difference between short- and long-maturity U.S. Treasuries (for ex…
Yield Curve Steepeningfixed_income
A yield curve steepening means the spread between short-term and long-term interest rates widens. Long-term yields rise relative to short-term yields, commonly measured by the difference between 2-year and 10-year U.S. T…
Yield Spreadfixed_income
The yield spread is the difference between the yields of two debt instruments with similar maturities, typically expressed in basis points. It reflects the extra compensation investors require for risks beyond time to ma…
Yield To Callfixed_income
Yield To Call (YTC) is the annualized return an investor would earn if a callable bond is redeemed by the issuer at the first possible call date, assuming all coupon payments are made and the bond is redeemed at the call…
Yield To Call (YTC)fixed_income
Yield To Call (YTC) is the annualized rate of return on a callable bond assuming the issuer redeems at the first call date and the investor receives the call price on that date, along with coupons paid through the call.
Yield To Maturityfixed_income
Yield to maturity (YTM) is the total expected return on a bond if held to its maturity. It accounts for the current price, remaining coupon payments, and the redemption of principal at maturity, and is typically expresse…
Yield To Maturity (YTM)fixed_income
Yield to Maturity (YTM) is the internal rate of return earned on a bond if it is held to maturity, assuming all coupon payments are reinvested at the YTM. It is the discount rate that makes the present value of the bond'…
Yield To Worstfixed_income
Yield to Worst (YTW) is the lowest yield a bondholder could receive, accounting for the bond’s embedded options and current price, by evaluating yields to all relevant redemption dates and choosing the smallest value.
Yield To Worst (YTW)fixed_income
Yield To Worst (YTW) is the lowest yield an investor could receive on a fixed-income security across all potential redemption scenarios (such as calls or puts) and the stated maturity, assuming no default. It is used to …