Common Bond Terminology

By January 25, 2023B, T
  • Asset-backed securities (ABS): Securities that are backed by a pool of assets such as mortgages, auto loans or credit card receivables.
  • Basis risk: The risk that the performance of a bond or bond portfolio will not match the performance of a benchmark or index.
  • Bond Arbitrage: A strategy where an investor takes advantage of price discrepancies between related bonds, such as bonds with similar credit quality or maturity, to generate a profit.
  • Bond Buyback: The process of buying back outstanding bonds from bondholders, which can be done for various reasons such as reducing debt, improving the credit rating, or adjusting the maturity profile.
  • Bond cash flow matching: A strategy for managing a bond portfolio where the portfolio is adjusted to match the cash flow needs of the investor.
  • Bond covenants: Restrictions or obligations placed on the issuer of a bond, such as limits on the use of proceeds, financial reporting requirements, or restrictions on the issuer’s ability to take on additional debt.
  • Bond credit selection: A strategy for managing a bond portfolio where the portfolio is adjusted to take advantage of changes in credit quality or credit spreads of different bonds.
  • Bond duration matching: A strategy for managing a bond portfolio where the duration of the portfolio is matched to the duration of the liabilities it is meant to fund.
  • Bond ETF: A type of exchange-traded fund that tracks a bond index or a specific segment of the bond market.
  • Bond Forward Rate Agreement (FRA): A financial contract that allows the buyer to lock in a future interest rate.
  • Bond fund: A type of mutual fund or exchange-traded fund that invests in a diversified portfolio of bonds.
  • Bond futures: The use of futures contracts such as Treasury bond futures or municipal bond futures to manage bond portfolio risk and gain exposure to the bond market.
  • Bond Immunization: A strategy for managing a bond portfolio where the portfolio is adjusted to achieve a specific future cash flow objective, such as matching a future liability.
  • Bond Indenture: A legal agreement between bond issuer and bond holders that spells out the rights and obligations of both parties.
  • Bond index: A benchmark that tracks the performance of a specific segment of the bond market.
  • Bond indexing: A strategy for managing a bond portfolio where the portfolio is indexed to a specific bond market index or benchmark.
  • Bond ladder: A strategy for investing in bonds that involves buying bonds with different maturity dates in order to create a steady stream of income and manage interest rate risk.
  • Bond laddering: A strategy for investing in bonds where an investor buys bonds with different maturity dates in order to create a steady stream of income and manage interest rate risk.
  • Bond liability driven investing (LDI): A strategy for managing a bond portfolio where the portfolio is adjusted to match the characteristics of the liabilities it is meant to fund, such as duration, credit quality, and currency.
  • Bond Market Accrued Interest: The interest that has accumulated on a bond since the last interest payment.
  • Bond Market Active Bond ETF: An ETF that is actively managed by a portfolio manager, as opposed to passive ETFs that track an index.
  • Bond Market Active Bond Fund: A type of bond fund that is actively managed by a portfolio manager, as opposed to passive bond funds that track an index.
  • Bond Market Active ETF: An ETF that is actively managed by a portfolio manager, as opposed to passive ETFs that track an index.
  • Bond Market Active management: A strategy for managing a bond portfolio where the portfolio is actively managed to take advantage of market conditions or changes in credit quality.
  • Bond Market Active-Passive Hybrid: A strategy for managing a bond portfolio where the portfolio is actively managed for some positions, and passively managed for others.
  • Bond Market Agency Bond: A bond issued by a government-sponsored agency such as Fannie Mae or Freddie Mac.
  • Bond Market Alpha: The excess return of a bond portfolio compared to its benchmark.
  • Bond Market Alternative Bond Market: A bond market that is not regulated by traditional exchanges, such as over-the-counter (OTC) markets, private placement markets, or crowdfunding markets.
  • Bond Market Anomaly: A deviation from the expected behavior of bond prices or yields that cannot be explained by traditional economic theory or fundamental analysis.
  • Bond Market Arbitrage: A strategy where an investor takes advantage of price discrepancies between related bonds, such as bonds with similar credit quality or maturity, to generate a profit.
  • Bond Market Asset-Backed Commercial Paper (ABCP): A type of short-term debt that is backed by assets such as receivables or mortgages.
  • Bond Market Asset-Backed Securities (ABS): A type of bond that pools together assets such as mortgages, auto loans, or credit card receivables, to create a single security.
  • Bond Market Asset-Backed Security (ABS): Securities that are backed by a pool of assets such as mortgages, auto loans, or credit card receivables.
  • Bond Market Basis point (bp): A unit of measurement for changes in interest rates or bond yields, equal to 0.01%.
  • Bond Market Basis Point (BP): A unit of measurement used to express the change in yield of a bond, equal to 0.01% or 0.0001.
  • Bond Market Basis Risk: The risk that the performance of a bond portfolio does not match the performance of the benchmark or index it is meant to track.
  • Bond Market Bearer Bond: A bond where the holder is considered the owner and is entitled to the interest payments and principal redemption.
  • Bond Market Beta: A measure of a bond portfolio’s volatility compared to its benchmark.
  • Bond Market Bond Convexity: A measure of the change in a bond’s duration as interest rates change.
  • Bond Market Bond ETF Options: A type of option that gives the holder the right but not the obligation to buy or sell shares of a bond ETF at a specified price and date in the future.
  • Bond Market Bond Forward Rate Agreement (FRA): A type of contract where an investor agrees to pay or receive a fixed rate of interest based on a benchmark interest rate, at a specific date in the future.
  • Bond Market Bond Forward: A type of contract where an investor agrees to buy or sell a bond at a specified price and date in the future.
  • Bond Market Bond Future: A type of contract where an investor agrees to buy or sell a bond at a specified price and date in the future, traded on an exchange.
  • Bond Market Bond Futures Options: A type of option that gives the holder the right but not the obligation to buy or sell a bond future at a specified price and date in the future.
  • Bond Market Bond Ladder: A strategy for managing a bond portfolio where the investor holds a mix of bonds with different maturity dates, to take advantage of different interest rate environments.
  • Bond Market Bond Option Spread: A strategy where an investor simultaneously buys and sells options on the same or similar bonds with different strike prices and expiration dates, to take advantage of different market conditions.
  • Bond Market Bond Option: A type of contract that gives the holder the right but not the obligation to buy or sell a bond at a specified price and date in the future.
  • Bond Market Bond Rating Outlook: A statement by a rating agency indicating whether a bond’s rating is likely to be upgraded or downgraded in the near future.
  • Bond Market Bond Swap Option: A type of contract that gives the holder the right but not the obligation to exchange one bond for another bond at a specified price and date in the future.
  • Bond Market Bond Swap: A strategy for managing a bond portfolio where an investor sells one bond and buys another bond of similar credit quality and maturity.
  • Bond Market Bond Volatility: A measure of the fluctuation in the value of a bond or bond portfolio over time.
  • Bond Market Buyback: The process of buying back outstanding bonds from bondholders, which can be done for various reasons such as reducing debt, improving the credit rating, or adjusting the maturity profile.
  • Bond Market Callability: The feature of a bond that allows the issuer to call or redeem the bond before its maturity date.
  • Bond Market Callable Bond: A bond that can be redeemed by the issuer before its maturity date at a specified call price.
  • Bond Market Capital Appreciation Bond: A bond where the interest payments are reinvested in the bond, resulting in a higher principal amount at maturity.
  • Bond Market Capitalization: The total value of the bond market, measured by the face value of all outstanding bonds.
  • Bond Market Capital-Protected Bond: A bond that guarantees to return the investor’s capital and a fixed rate of return over the life of the bond.
  • Bond Market Capital-protected notes (CPNs): A type of bond that guarantees the return of the investor’s capital and a fixed return over the life of the bond.
  • Bond Market Collateralized Bond Obligation (CBO): A type of structured bond where the cash flows from a pool of bonds are used to pay the interest and principal on the CBO.
  • Bond Market Collateralized Bond Obligations (CBOs): A type of bond that pools together a group of bonds to create a single security, and uses collateral to enhance credit quality.
  • Bond Market Collateralized Debt Obligation (CDO): A type of structured bond where the cash flows from a pool of assets such as mortgages, auto loans or credit card receivables are used to pay the interest and principal on the CDO.
  • Bond Market Collateralized Debt Obligations (CDOs): A type of bond that pools together a group of bonds, loans, or other debt instruments to create a single security, and uses collateral to enhance credit quality.
  • Bond Market Collateralized Mortgage Obligations (CMOs): A type of bond that pools together mortgages and creates separate classes of bonds with different levels of risk and return.
  • Bond Market Commercial Mortgage-Backed Securities (CMBS): A type of bond
  • Bond Market Conditional Value at Risk (CVaR): A measure of the expected loss of a bond portfolio over a given time horizon, given that a loss has occurred.
  • Bond Market Convertible Bond: A bond that can be converted into a specified number of shares of the issuer’s stock at a specified conversion price.
  • Bond Market Convexity Risk: The risk that changes in interest rates will affect the convexity of a bond, leading to changes in its value.
  • Bond Market Convexity: A measure of the change in a bond’s duration in response to changes in interest rates.
  • Bond Market Corporate Bond ETF: An ETF that holds a basket of corporate bonds and trades like a stock on an exchange.
  • Bond Market Corporate Bond ETF: An ETF that holds a basket of corporate bonds, providing higher income than government bonds but with higher default risk.
  • Bond Market Corporate Bond Fund: A type of bond fund that holds corporate bonds, providing higher income than government bonds but with higher default risk.
  • Bond Market Corporate Bond Fund: A type of bond fund that holds corporate bonds, to provide income from various companies.
  • Bond Market Corporate Bond: A bond issued by a corporation to raise funds for business operations or expansion.
  • Bond Market Corporate Commercial Paper (CP): A type of short-term debt that is issued by a corporation.
  • Bond Market Country Risk: The risk that a bond issuer will default on its debt obligations due to political or economic instability in the country where the issuer is based.
  • Bond Market Covered Bonds: A type of bond where the issuer pledges to cover any losses from a specified pool of assets in the event of default.
  • Bond Market Credit Cycle: The cyclical pattern of credit expansion and contraction in the economy.
  • Bond Market Credit Default Option: A type of contract that gives the holder the right but not the obligation to buy or sell a bond at a specified price and date in the future if the bond issuer defaults on its payment obligations.
  • Bond Market Credit Default Swap (CDS) Option: A type of contract that gives the holder the right but not the obligation to buy or sell a credit default swap at a specified price and date in the future.
  • Bond Market Credit Default Swap (CDS): A financial contract that allows an investor to protect against the risk of default of a bond or other debt instrument.
  • Bond Market Credit Default Swap (CDS): A type of insurance that protects the holder from a bond default.
  • Bond Market Credit Enhancement: A feature added to a bond to improve its credit rating, such as a guarantee from a third party or a collateral.
  • Bond Market Credit Rating Agency: A company that assesses the creditworthiness of bond issuers and assigns credit ratings.
  • Bond Market Credit Rating Migration: The movement of a bond’s credit rating up or down over time.
  • Bond Market Credit Rating: An assessment of the creditworthiness of a bond issuer, based on its ability to repay its debt obligations.
  • Bond Market Credit Risk Management: The process of managing the exposure of a bond portfolio to default risk through diversification, credit enhancement, credit risk transfer, and other strategies.
  • Bond Market Credit Risk Mitigation: The process of reducing the credit risk of a bond or bond portfolio through diversification, credit enhancement, or credit risk transfer.
  • Bond Market Credit Risk Transfer (CRT): A mechanism where a portion of the credit risk of a bond is transferred to investors through credit default swaps, collateralized debt obligations, or other financial instruments.
  • Bond Market Credit Risk: The risk that a bond issuer will default on its debt obligations.
  • Bond Market Credit Risk: The risk that a bond issuer will default on its payment obligations.
  • Bond Market Credit Spread: The difference in yield between a bond and a benchmark bond with similar maturity and credit quality.
  • Bond Market Credit Spread: The difference in yield between a corporate bond and a Treasury bond of similar maturity.
  • Bond Market Credit-Linked Note (CLN): A type of structured bond where the cash flows from the bond are linked to the credit performance of a specific reference entity or index.
  • Bond Market Cross Currency Risk: The risk that changes in exchange rates will affect the value of a bond that is denominated in a foreign currency and issued by a foreign issuer.
  • Bond Market Currency option: A financial instrument that gives the holder the right but not the obligation to buy or sell a currency at a specific exchange rate.
  • Bond Market Currency Risk: The risk that changes in exchange rates will affect the value of a bond portfolio.
  • Bond Market Currency Risk: The risk that changes in exchange rates will affect the value of a bond that is denominated in a foreign currency.
  • Bond Market Currency swap: A financial instrument that allows the holder to exchange a bond’s cash flows in one currency for cash flows in another currency.
  • Bond Market Current yield: The annual interest payment of a bond divided by its current market price.
  • Bond Market Current Yield: The annual interest payment of a bond divided by the bond’s current market price.
  • Bond Market Deferred Interest Bond: A bond where the interest payments are not paid to the holder until the maturity date or a later date.
  • Bond Market Depth: The level of liquidity in the bond market, measured by the number of buyers and sellers and the ease of trading.
  • Bond Market Discount Bond: A bond that is sold at a price lower than its face value.
  • Bond Market Discount Bond: A bond that is trading below its face value.
  • Bond Market Diversification: A risk management strategy where an investor holds a variety of assets in order to spread the risk across different markets, sectors, or credit quality.
  • Bond Market Dual Currency Bond: A bond where the coupon payments and principal are denominated in two different currencies.
  • Bond Market Duration gap: The difference between the duration of a bond portfolio’s assets and liabilities.
  • Bond Market Duration Risk: The risk that changes in interest rates will affect the duration of a bond, leading to changes in its value.
  • Bond Market Efficiency: The degree to which prices in the bond market reflect all relevant information and respond quickly to new information.
  • Bond Market Embedded Option Risk: The risk that a bond’s price will be affected by the embedded options such as call or put features.
  • Bond Market Embedded Option: An option that is built into the bond, such as a call option or put option.
  • Bond Market Emerging Market Bond ETF: An ETF that holds a basket of bonds from emerging markets, providing diversification and higher yield but with higher default risk.
  • Bond Market Emerging Market Bond Fund: A type of bond fund that holds bonds from emerging markets, providing diversification and higher yield but with higher default risk.
  • Bond Market Escrowed To Maturity (ETM) Bond: A bond where the proceeds from the bond are held in escrow until maturity and used to pay the bond’s interest and principal.
  • Bond Market ESG Bond: A bond that is issued by companies that meet certain environmental, social, and governance criteria.
  • Bond Market Eurobond: A bond that is issued in a currency other than the currency of the issuer’s domestic market.
  • Bond Market Event Risk: The risk that a bond issuer will default on its debt obligations due to a specific event such as a natural disaster or legal proceeding.
  • Bond Market Exchangeable Bond: A bond that can be exchanged for shares of a specified company at a specified exchange ratio.
  • Bond Market Expected Shortfall (ES): A measure of the potential loss of a bond portfolio over a given time horizon, in the worst-case scenario.
  • Bond Market Extension Risk: The risk that a bond’s price will fall as its maturity date approaches, due to rising interest rates.
  • Bond Market Fiscal consolidation: A fiscal policy strategy where a government reduces spending or increases taxes to reduce the budget deficit or debt levels.
  • Bond Market Fiscal Policy: The actions taken by a government to control the budget deficit or surplus and the level of government spending.
  • Bond Market Fiscal stimulus: A fiscal policy strategy where a government increases spending or cuts taxes to boost economic growth.
  • Bond Market Floating Rate Bond : A bond that has a coupon rate that is adjusted periodically based on a benchmark interest rate.
  • Bond Market Floating Rate Bond ETF: An ETF that holds a basket of floating rate bonds and trades like a stock on an exchange.
  • Bond Market Floating Rate Bond ETF: An ETF that holds a basket of floating rate bonds, providing a more flexible interest rate exposure.
  • Bond Market Floating Rate Bond Fund: A type of bond fund that holds floating rate bonds, providing a more flexible interest rate exposure.
  • Bond Market Floating Rate Bond Fund: A type of bond fund that holds floating rate bonds, to provide income that adjusts with changes in interest rates.
  • Bond Market Floating Rate Bond: A bond with a variable interest rate that is reset at regular intervals based on a benchmark interest rate.
  • Bond Market Floating Rate Commercial Paper (FRN): A type of short-term debt that has a variable interest rate that is reset at regular intervals based on a benchmark interest rate.
  • Bond Market Floating Rate Corporate (FRC) : A type of bond issued by corporations that has a coupon rate that is adjusted periodically based on a benchmark interest rate.
  • Bond Market Floating Rate Corporate ETF: An ETF that holds a basket of floating rate corporate bonds, providing a more flexible interest rate exposure.
  • Bond Market Floating Rate Municipal Bond (FRMB): A type of floating rate bond that is issued by a state or local government.
  • Bond Market Floating Rate Municipal Bond ETF: An ETF that holds a basket of floating rate municipal bonds, providing a more flexible interest rate exposure and tax-free income.
  • Bond Market Floating Rate Municipal Bond Fund: A type of bond fund that holds floating rate municipal bonds, providing a more flexible interest rate exposure and tax-free income.
  • Bond Market Floating Rate Note (FRN): A type of floating rate bond that is issued by a corporation or financial institution.
  • Bond Market Floating Rate Treasury (FRT) : A type of bond issued by the US government that has a coupon rate that is adjusted periodically based on a benchmark interest rate.
  • Bond Market Floating Rate Treasury (FRT): A type of floating rate bond that is issued by the federal government.
  • Bond Market Floating Rate Treasury ETF: An ETF that holds a basket of floating rate Treasury bonds, providing a more flexible interest rate exposure.
  • Bond Market Floating-Rate Note (FRN): A bond that has a variable interest rate that is reset at regular intervals based on a benchmark interest rate.
  • Bond Market Foreign Bond: A bond that is issued by a foreign issuer and sold to domestic investors.
  • Bond Market Foreign Currency Bond: A bond that is issued in a currency other than the currency of the investor’s domestic market.
  • Bond Market Foreign Currency Denominated Bond: A bond where the coupon payments and principal are denominated in a currency other than the currency of the issuer’s domestic market.
  • Bond Market Foreign Currency Hedged Bond: A bond where the currency risk is hedged through the use of financial instruments such as currency swaps or options.
  • Bond Market Foreign Currency Unhedged Bond: A bond where the currency risk is not hedged and the investor is exposed to changes in exchange rates.
  • Bond Market Forward Rate Agreement (FRA): A financial contract that allows the buyer to lock in a future interest rate.
  • Bond Market Global Bond ETF: An ETF that holds a basket of bonds from different countries and currencies, providing diversification and currency exposure.
  • Bond Market Global Bond Fund: A type of bond fund that holds bonds from different countries and currencies, providing diversification and currency exposure.
  • Bond Market Green Bond: A bond that is issued to finance environmentally friendly projects such as renewable energy or sustainable transportation.
  • Bond Market Guaranteed Investment Certificates (GICs): A type of bond that is issued by a bank or other financial institution and guarantees a fixed return over a specific period of time.
  • Bond Market Hedging: A risk management strategy where an investor uses financial instruments such as options, swaps, or futures to reduce the risk of a bond portfolio.
  • Bond Market High Yield Bond ETF: An ETF that holds a basket of high-yield bonds, providing a higher income but with a higher risk of default.
  • Bond Market High Yield Bond Fund: A type of bond fund that holds high-yield bonds, providing a higher income but with a higher risk of default.
  • Bond Market High-Yield Bond ETF: An ETF that holds a basket of high-yield bonds and trades like a stock on an exchange.
  • Bond Market High-Yield Bond Fund: A type of bond fund that holds bonds with lower credit ratings, to provide higher income but with higher risk.
  • Bond Market Immunization: A strategy for managing a bond portfolio where the portfolio is adjusted to achieve a specific future cash flow objective, such as matching a future liability.
  • Bond Market Income Bond: A bond where the interest payments are only made if the issuer generates enough income.
  • Bond market index: A measure of the performance of a specific segment of the bond market, such as Treasury bonds or corporate bonds.
  • Bond Market Indexing: A strategy for managing a bond portfolio where the portfolio is indexed to a specific bond market index or benchmark.
  • Bond Market Inflation Risk: The risk that changes in inflation will affect the value of a bond portfolio.
  • Bond Market Inflation Risk: The risk that inflation will erode the purchasing power of a bond’s coupon payments and principal.
  • Bond Market Inflation targeting: A monetary policy strategy where a central bank sets a target for inflation and uses monetary policy tools to achieve that target.
  • Bond Market Inflation-Linked Bond: A bond whose coupon payments and/or principal value are linked to inflation.
  • Bond Market Inflation-linked Bond: A bond with coupon payments and principal that are linked to inflation.
  • Bond Market Inflation-Protected Bond ETF: An ETF that holds a basket of inflation-protected bonds, providing protection against inflation risk.
  • Bond Market Inflation-Protected Bond Fund: A type of bond fund that holds inflation-protected bonds, providing protection against inflation risk.
  • Bond Market Information Ratio: A measure of a bond portfolio’s active returns, calculated as the portfolio’s excess returns divided by its active risk.
  • Bond Market Interest rate cap and floor: Financial instruments that provide protection against interest rate movements by setting a maximum or minimum rate.
  • Bond Market Interest rate collar: A financial instrument that combines an interest rate cap and floor to create a range within which interest rates are protected.
  • Bond Market Interest rate corridor: The range within which interest rates are expected to fluctuate, based on the central bank’s monetary policy.
  • Bond Market Interest rate futures: Financial contracts that allow investors to buy or sell an interest rate at a future date.
  • Bond Market Interest rate options: Financial instruments that give the holder the right but not the obligation to buy or sell an interest rate at a specific level.
  • Bond Market Interest rate Risk: The risk that changes in interest rates will affect the value of a bond portfolio.
  • Bond Market Interest Rate Risk: The risk that changes in interest rates will affect the value of a bond.
  • Bond Market Interest Rate Swap (IRS): A type of contract where two parties agree to exchange a fixed rate of interest for a floating rate of interest, or vice versa, on a specific date in the future.
  • Bond Market Interest rate swap: A financial instrument that allows the holder to exchange a bond’s fixed interest rate for a floating interest rate, or vice versa.
  • Bond Market Interest rate swaption: An option that gives the holder the right but not the obligation to enter into an interest rate swap.
  • Bond Market Intermediate-term Bond ETF: An ETF that holds a basket of intermediate-term bonds and trades like a stock on an exchange.
  • Bond Market Intermediate-Term Bond ETF: An ETF that holds a basket of intermediate-term bonds, providing balance of interest rate risk and income.
  • Bond Market Intermediate-Term Bond Fund: A type of bond fund that holds bonds with intermediate maturity dates, providing balance of interest rate risk and income.
  • Bond Market Intermediate-term Bond Fund: A type of bond fund that holds bonds with intermediate maturity dates, to provide a balance between income and interest rate risk.
  • Bond Market International Bond ETF: An ETF that holds a basket of bonds issued by foreign governments or corporations and trades like a stock on an exchange.
  • Bond Market International Bond Fund: A type of bond fund that holds bonds issued by foreign governments or corporations, to provide income from various countries.
  • Bond Market Investment Grade Bond ETF: An ETF that holds a basket of investment grade bonds and trades like a stock on an exchange.
  • Bond Market Investment Grade Bond Fund: A type of bond fund that holds bonds with higher credit ratings, to provide lower income but with lower risk.
  • Bond Market Jensen’s Alpha: A measure of a bond portfolio’s abnormal returns, calculated as the portfolio’s excess returns minus the risk-adjusted returns that would be expected based on the portfolio’s beta.
  • Bond Market Key rate duration: A measure of a bond’s sensitivity to changes in specific interest rates, often used to estimate the percentage change in price for a 1% change in specific interest rates.
  • Bond Market Legal Risk: The risk that a bond issuer’s ability to make payments will be affected by legal or regulatory changes.
  • Bond Market Leverage: Using borrowed money to increase the potential return of an investment, but also increases the potential risk.
  • Bond Market Liquidity Risk: The risk that a bond portfolio may not be able to sell its holdings at fair value in a timely manner.
  • Bond Market Liquidity Risk: The risk that a bond will be difficult to buy or sell at a reasonable price in the market.
  • Bond market liquidity: The ease with which bonds can be bought and sold in the market.
  • Bond Market Long-term Bond ETF: An ETF that holds a basket of long-term bonds and trades like a stock on an exchange.
  • Bond Market Long-Term Bond ETF: An ETF that holds a basket of long-term bonds, providing higher income but with higher interest rate risk.
  • Bond Market Long-Term Bond Fund: A type of bond fund that holds bonds with long maturity dates, providing higher income but with higher interest rate risk.
  • Bond Market Long-term Bond Fund: A type of bond fund that holds bonds with longer maturity dates, to provide higher income but with higher interest rate risk.
  • Bond Market Modified duration: A measure of a bond’s sensitivity to changes in interest rates, often used to estimate the percentage change in price for a 1% change in interest rates.
  • Bond Market Monetary and Fiscal Policy Coordination: The cooperation between a central bank and government to achieve specific economic goals, such as controlling inflation or promoting growth.
  • Bond Market Monetary Policy: The actions taken by a central bank to control the money supply and interest rates in the economy.
  • Bond Market Municipal Bond Closed-End Fund: A type of bond fund that holds municipal bonds and is traded on an exchange like a stock, providing tax-free income and the ability for the fund’s net asset value to trade at a premium or discount to its underlying assets.
  • Bond Market Municipal Bond ETF: An ETF that holds a basket of municipal bonds, providing tax-free income.
  • Bond Market Municipal Bond ETF: An exchange-traded fund (ETF) that holds a basket of municipal bonds and trades like a stock on an exchange.
  • Bond Market Municipal Bond Exchange-Traded Note (ETN): A type of bond-based security that is traded on an exchange and tracks the performance of a specific municipal bond index, providing tax-free income but with the credit risk of the issuer of the ETN.
  • Bond Market Municipal Bond Fund Credit Quality: A measure of the creditworthiness of the bonds held in a municipal bond fund.
  • Bond Market Municipal Bond Fund Credit Spread: The difference in yield between a municipal bond fund and a similar-maturity Treasury bond.
  • Bond Market Municipal Bond Fund Distribution Rate: The rate at which a municipal bond fund pays out income to its shareholders.
  • Bond Market Municipal Bond Fund Diversification: The spread of investments across different bonds and issuers to reduce risk.
  • Bond Market Municipal Bond Fund Duration: A measure of a municipal bond fund’s sensitivity to changes in interest rates.
  • Bond Market Municipal Bond Fund Expense Ratio: The annual fee charged by a municipal bond fund to cover its operating expenses, expressed as a percentage of the fund’s assets.
  • Bond Market Municipal Bond Fund Liquidity: The ease with which a municipal bond fund can be bought and sold in the market.
  • Bond Market Municipal Bond Fund Maturity Laddering: The strategy of investing in bonds with different maturity dates to reduce interest rate risk and match cash flow needs.
  • Bond Market Municipal Bond Fund Net Asset Value (NAV): The per-share value of a municipal bond fund, based on the value of its underlying bonds and other assets.
  • Bond Market Municipal Bond Fund Sectoral Diversification: The spread of investments across different sectors, such as infrastructure, education, or healthcare, to reduce risk.
  • Bond Market Municipal Bond Fund Tax Efficiency: The ability of a municipal bond fund to minimize the impact of taxes on its returns.
  • Bond Market Municipal Bond Fund Tax-Advantaged: The ability of a municipal bond fund to provide tax benefits to investors.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Closed-End Fund: A type of bond fund that holds tax-exempt municipal bonds and is traded on an exchange like a stock, providing tax-free income and the ability for the fund’s net asset value to trade at a premium or discount to its underlying assets.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Credit Quality: A measure of the creditworthiness of the bonds held in a tax-exempt municipal bond fund.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Credit Spread: The difference in yield between a tax-exempt municipal bond fund and a similar-maturity Treasury bond.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Distribution Rate: The rate at which a tax-exempt municipal bond fund pays out income to its shareholders.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Diversification: The spread of investments across different tax-exempt municipal bonds and issuers to reduce risk.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Duration: A measure of a tax-exempt municipal bond fund’s sensitivity to changes in interest rates
  • Bond Market Municipal Bond Fund Tax-Exempt Bond ETF: An ETF that holds a basket of tax-exempt municipal bonds, providing tax-free income.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Exchange-Traded Note (ETN): A type of bond-based security that is traded on an exchange and tracks the performance of a specific tax-exempt municipal bond index, providing tax-free income but with the credit risk of the issuer of the ETN.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Fund: A type of bond fund that holds tax-exempt municipal bonds, providing tax-free income.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Liquidity: The ease with which a tax-exempt municipal bond fund can be bought and sold in the market.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Market Value: The current market value of a tax-exempt municipal bond, based on its price and the number of bonds held.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Maturity Laddering: The strategy of investing in tax-exempt municipal bonds with different maturity dates to reduce interest rate risk and match cash flow needs.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Net Asset Value (NAV): The per-share value of a tax-exempt municipal bond fund, based on the value of its underlying bonds and other assets.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Sectoral Diversification: The spread of investments across different sectors, such as infrastructure, education, or healthcare, to reduce risk.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax Efficiency: The ability of a tax-exempt municipal bond fund to minimize the impact of taxes on its returns.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Advantaged: The ability of a tax-exempt municipal bond fund to provide tax benefits to investors.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Closed-End Fund: A type of bond fund that holds tax-exempt municipal bonds and is traded on an exchange like a stock, providing tax-free income and the ability for the fund’s net asset value to trade at a premium or discount to its underlying assets.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Credit Quality: A measure of the creditworthiness of the bonds held in a tax-exempt municipal bond fund.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Credit Spread: The difference in yield between a tax-exempt municipal bond fund and a similar-maturity Treasury bond.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Distribution Rate: The rate at which a tax-exempt municipal bond fund pays out income to its shareholders.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Diversification: The spread of investments across different tax-exempt municipal bonds and issuers to reduce risk.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Duration: A measure of a tax-exempt municipal bond fund’s sensitivity to changes in interest rates.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond ETF: An ETF that holds a basket of tax-exempt municipal bonds, providing tax-free income.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Exchange-Traded Note (ETN): A type of bond-based security that is traded on an exchange and tracks the performance of a specific tax-exempt municipal bond index, providing tax-free income but with the credit risk of the issuer of the ETN.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Fund: A type of bond fund that holds tax-exempt municipal bonds, providing tax-free income.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Liquidity: The ease with which a tax-exempt municipal bond fund can be bought and sold in the market.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Market Value: The current market value of a tax-exempt municipal bond, based on its price and the number of bonds held.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Maturity Laddering: The strategy of investing in tax-exempt municipal bonds with different maturity dates to reduce interest rate risk and match cash flow needs.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Net Asset Value (NAV): The per-share value of a tax-exempt municipal bond fund, based on the value of its underlying bonds and other assets.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Sectoral Diversification: The spread of investments across different sectors, such as infrastructure, education, or healthcare, to reduce risk.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Tax Efficiency: The ability of a tax-exempt municipal bond fund to minimize the impact of taxes on its returns.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Tax-Advantaged: The ability of a tax-exempt municipal bond fund to provide tax benefits to investors.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Tax-Exempt Bond Market Value: The current market
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Tax-Exempt Interest: The interest earned on a tax-exempt bond that is not subject to federal income taxes.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Total Return: The return of a tax-exempt municipal bond fund, including income and capital gains/losses.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Turnover Rate: The rate at which the bonds in a tax-exempt municipal bond fund are bought and sold.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Volatility: A measure of the fluctuation in the value of a tax-exempt municipal bond fund over time.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond Yield: The income return of a tax-exempt municipal bond fund, expressed as a percentage of the fund’s NAV.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Bond: A bond issued by a state or local government that is not subject to federal income taxes.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Tax-Exempt Interest: The interest earned on a tax-exempt bond that is not subject to federal income taxes.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Total Return: The return of a tax-exempt municipal bond fund, including income and capital gains/losses.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Turnover Rate: The rate at which the bonds in a tax-exempt municipal bond fund are bought and sold.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Volatility: A measure of the fluctuation in the value of a tax-exempt municipal bond fund over time.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond Yield: The income return of a tax-exempt municipal bond fund, expressed as a percentage of the fund’s NAV.
  • Bond Market Municipal Bond Fund Tax-Exempt Bond: A bond issued by a state or local government that is not subject to federal income taxes.
  • Bond Market Municipal Bond Fund Tax-Exempt Income: The income earned on municipal bonds that is not subject to federal income taxes.
  • Bond Market Municipal Bond Fund Tax-Exempt Interest: The interest earned on a tax-exempt bond that is not subject to federal income taxes.
  • Bond Market Municipal Bond Fund Tax-Free Distribution: The distribution of income earned on municipal bonds that is not subject to federal income taxes.
  • Bond Market Municipal Bond Fund Total Return: The return of a municipal bond fund, including income and capital gains/losses.
  • Bond Market Municipal Bond Fund Turnover Rate: The rate at which the bonds in a municipal bond fund are bought and sold.
  • Bond Market Municipal Bond Fund Volatility: A measure of the fluctuation in the value of a municipal bond fund over time.
  • Bond Market Municipal Bond Fund Yield: The income return of a municipal bond fund, expressed as a percentage of the fund’s NAV.
  • Bond Market Municipal Bond Fund: A type of bond fund that holds municipal bonds, providing tax-free income.
  • Bond Market Municipal Bond Fund: A type of bond fund that holds municipal bonds, to provide tax-free income for investors in certain states.
  • Bond Market Municipal Bond Insurance: A guarantee provided by a third-party insurer that a municipal bond will be repaid even if the issuer defaults.
  • Bond Market Municipal Bond Market Value: The current market value of a municipal bond, based on its price and the number of bonds held.
  • Bond Market Municipal Bond: A bond issued by a state or local government to raise funds for public projects or services.
  • Bond Market Municipal Commercial Paper (MCP): A type of short-term debt that is issued by a state or local government.
  • Bond Market Municipal Inflation-Protected Securities (MIPS): A type of inflation-linked bond that is issued by a state or local government.
  • Bond Market not guarantee a fixed rate of return.
  • Bond Market Offshore Bond Market: A bond market that is located outside of an investor’s domestic market, such as foreign or emerging market bonds.
  • Bond Market Operational Risk: The risk that a bond portfolio’s performance will be affected by operational issues such as system failures or human errors.
  • Bond Market Option Adjusted Spread (OAS): A measure of the spread between a bond and its corresponding benchmark, adjusted for the bond’s embedded options.
  • Bond Market Option-Adjusted Spread (OAS): A measure of the spread of a bond’s yield to a benchmark yield, adjusted for the bond’s embedded options.
  • Bond Market Passive management: A strategy for managing a bond portfolio where the portfolio is indexed to a benchmark and not actively managed.
  • Bond Market Patriot Bond: A bond issued by the US government to support national defense and homeland security, usually with favorable terms for the investor.
  • Bond Market Perpetual Bond: A bond that does not have a maturity date and pays coupon payments indefinitely.
  • Bond Market Political Risk: The risk that changes in government policies or actions will negatively affect the value of a bond.
  • Bond Market Political Risk: The risk that changes in government policies or political instability will affect the value of a bond portfolio.
  • Bond Market Portfolio Management: The process of managing a portfolio of bonds to achieve specific investment goals, such as income generation or capital preservation.
  • Bond Market Portfolio Turnover: A measure of how frequently a bond portfolio’s holdings are traded.
  • Bond Market Premium Bond: A bond that is sold at a price higher than its face value.
  • Bond Market Premium Bond: A bond that is trading above its face value.
  • Bond Market Principal Protected Notes (PPNs): A type of bond that guarantees the return of the investor’s principal, but does not guarantee a fixed rate of return.
  • Bond Market Principal-Protected Bond: A bond that guarantees to return the investor’s principal at maturity, but does
  • Bond Market Putability: The feature of a bond that allows the holder to sell the bond back to the issuer before its maturity date.
  • Bond Market Puttable Bond: A bond that can be sold back to the issuer at a specified put price, usually at certain predetermined dates.
  • Bond Market Quantitative easing: A monetary policy strategy where a central bank buys government bonds or other securities to increase the money supply and lower interest rates.
  • Bond Market Real estate mortgage-backed securities (RMBS): A type of bond that is backed by the cash flows from a portfolio of mortgages.
  • Bond Market Refinancing: The process of issuing new bonds to retire or refinance outstanding debt.
  • Bond Market Registered Bond: A bond where the ownership is recorded by the issuer and the interest payments and principal redemption is sent to the registered owner.
  • Bond Market Regulatory Risk: The risk that changes in laws or regulations will negatively affect the value of a bond.
  • Bond Market Reinvestment Risk: The risk that a bond portfolio will not be able to reinvest its cash flows at the same rate as the bond’s coupon.
  • Bond Market Reinvestment Risk: The risk that a bond’s coupon payments or principal will not be able to be reinvested at the same or higher rate when they become due.
  • Bond Market Repricing Risk: The risk that a bond’s price will fall as its coupon rate is reset, due to rising interest rates.
  • Bond Market Repricing: The process of adjusting the coupon rate of a bond to match current market conditions.
  • Bond Market Repurchase Agreement (Repo): A type of short-term borrowing where a bond is sold to an investor with an agreement to repurchase it at a higher price at a later date.
  • Bond Market Residential Mortgage-Backed Securities (RMBS): A type of bond that is backed by the cash flows from a portfolio of residential mortgages.
  • Bond Market Reverse Convertible: A type of bond that pays a high coupon rate but has a higher risk of default or loss of principal.
  • Bond Market Reverse mortgage-backed securities (RMBS): A type of bond that is backed by the cash flows from a portfolio of reverse mortgages.
  • Bond Market Reverse Repurchase Agreement (Reverse Repo): A type of short-term lending where a bond is bought by an investor with an agreement to sell it back to the lender at a lower price at a later date.
  • Bond Market Risk Management: The process of managing the overall risk of a bond portfolio through diversification, hedging, and other strategies.
  • Bond Market Risk Retention: A regulatory requirement where issuers of securitized bonds must retain a portion of the credit risk of the bonds they issue.
  • Bond Market R-Squared: A measure of how closely a bond portfolio’s returns are correlated to its benchmark.
  • Bond Market Samurai Bond: A Japanese bond that is issued in foreign currency and sold to foreign investors.
  • Bond Market Securitization Rating: A rating assigned to a securitized bond, indicating the risk of default and the expected loss in the event of default.
  • Bond Market Securitization: The process of pooling together assets or debt obligations and creating a new financial security that can be sold to investors.
  • Bond Market Securitization: The process of pooling various types of debt such as mortgages, auto loans, and credit card receivables and selling the resulting securities to investors.
  • Bond Market Sharpe Ratio: A measure of a bond portfolio’s risk-adjusted returns, calculated as the portfolio’s excess returns divided by its volatility.
  • Bond Market Short-term Bond ETF: An ETF that holds a basket of short-term bonds and trades like a stock on an exchange.
  • Bond Market Short-Term Bond ETF: An ETF that holds a basket of short-term bonds, providing lower interest rate risk.
  • Bond Market Short-Term Bond Fund: A type of bond fund that holds bonds with short maturity dates, providing lower interest rate risk.
  • Bond Market Short-term Bond Fund: A type of bond fund that holds bonds with shorter maturity dates, to provide income with less interest rate risk.
  • Bond Market Sinking Fund Bond: A bond that has a provision for the issuer to retire a certain amount of bonds periodically, usually through a sinking fund.
  • Bond Market Social Bond: A bond that is issued to finance projects that have a positive social impact, such as affordable housing or education.
  • Bond Market Sovereign Risk: The risk that a country’s government will default on its debt or fail to meet other financial obligations.
  • Bond Market Sovereign Risk: The risk that a government will default on its debt obligations or take actions that negatively affect the value of its bonds.
  • Bond Market Spread duration: A measure of a bond’s sensitivity to changes in credit spreads, often used to estimate the percentage change in price for a 1% change in credit spreads.
  • Bond Market Spread Duration: A measure of the sensitivity of a bond’s spread to changes in interest rates.
  • Bond Market Spread Risk: The risk that a bond’s spread will widen or narrow, leading to a change in its value.
  • Bond Market Spread: The difference in yield between two bonds, often used to compare the relative risk of different bonds or bond sectors.
  • Bond Market Structured Notes: A type of bond that combines the features of a traditional bond with the potential for higher returns through embedded derivatives or other complex structures.
  • Bond Market Supranational Bond: A bond issued by a supranational organization such as the World Bank or the European Investment Bank.
  • Bond Market Sustainable Bond: A bond that is issued to finance projects that have a positive environmental and social impact.
  • Bond Market Synthetic CDO: A type of bond that uses derivatives such as credit default swaps to create a security with similar characteristics to a traditional CDO, but without actually buying the underlying assets.
  • Bond Market Synthetic Securitization: The process of creating a new financial security using derivatives, rather than actual assets or debt obligations.
  • Bond Market Systematic Risk: The risk that is inherent to the market and cannot be diversified away.
  • Bond Market Target Maturity Bond ETF: An ETF that holds a basket of bonds that are expected to mature around the same time, providing a targeted maturity exposure.
  • Bond Market Target Maturity Bond Fund: A type of bond fund that aims to hold bonds that will mature at a specific target date, to provide a predictable stream of income.
  • Bond Market Tender Offer: An offer made by a bond issuer to repurchase outstanding bonds at a premium or at a specific price.
  • Bond Market Tender Option Bond (TOB): A bond that gives the issuer the option to buy back the bond at a premium during certain months.
  • Bond Market that is backed by the cash flows from a portfolio of commercial mortgages.
  • Bond Market TIPS ETF: An ETF that holds a basket of Treasury Inflation-Protected Securities, providing inflation-protected returns.
  • Bond Market Total Return Bond ETF: An ETF that holds a basket of bonds and uses various financial instruments to generate returns in addition to the bond’s coupon payments.
  • Bond Market Total Return Swap (TRS): A financial contract in which the buyer receives the total return of a bond, including the interest and any capital appreciation, in exchange for a fixed or floating rate return.
  • Bond Market Tracking Error: A measure of how closely a bond portfolio’s returns match its benchmark.
  • Bond Market Treasury Bond ETF: An ETF that holds a basket of Treasury bonds and trades like a stock on an exchange.
  • Bond Market Treasury Bond Fund: A type of bond fund that holds Treasury bonds, to provide income from the US government.
  • Bond Market Treasury Bond: A bond issued by the federal government to raise funds for general operations and debt repayment.
  • Bond Market Treasury Floating Rate Note (TFRN): A type of floating rate bond that is issued by the federal government.
  • Bond Market Treasury Inflation-Protected Securities (TIPS): A type of bond issued by the US government that provides inflation-protected returns.
  • Bond Market Treasury Inflation-Protected Securities (TIPS): A type of inflation-linked bond that is issued by the federal government.
  • Bond Market Treynor Ratio: A measure of a bond portfolio’s risk-adjusted returns, calculated as the portfolio’s excess returns divided by its beta.
  • Bond Market Unsystematic Risk: The risk that is specific to a particular bond or issuer and can be diversified away by holding a portfolio of bonds.
  • Bond Market Value at Risk (VaR): A measure of the potential loss of a bond portfolio over a given time horizon with a certain level of confidence.
  • Bond market volatility: The degree to which bond prices fluctuate in response to market conditions.
  • Bond Market War Bond: A bond issued by a government to finance a war effort, usually with favorable terms for the investor.
  • Bond market yield curve: A graph that shows the relationship between bond yields and maturity dates.
  • Bond Market Yield Spread: The difference in yield between two bonds of different credit quality, maturity, or other characteristics.
  • Bond Market Yield to call (YTC): The total return an investor would receive if they held a bond until the call date, assuming they reinvested the coupon payments at the bond’s YTC.
  • Bond Market Yield to Call (YTC): The total return of a bond, including interest and capital gains, if held until the call date.
  • Bond Market Yield to Maturity (YTM): The total return an investor would receive if they held a bond until maturity, assuming they reinvested the coupon payments at the bond’s YTM.
  • Bond Market Yield to Maturity (YTM): The total return of a bond, including interest and capital gains, if held until maturity.
  • Bond Market Yield to Worst (YTW): The lowest potential yield of a bond, taking into account the bond’s call and put options.
  • Bond Market Yield to Worst (YTW): The lowest yield an investor would receive if they held a bond until its maturity or the next call date, whichever is lower.
  • Bond Market Zero-Coupon Bond: A bond that does not make coupon payments, but is sold at a discount to its face value and matures at the face value.
  • Bond Market Zero-Coupon Bond: A bond that does not pay regular interest payments, instead, it is sold at a discount and matures at face value.
  • Bond options: The use of options contracts such as call options and put options to manage bond portfolio risk and generate additional income.
  • Bond overlay: A strategy for managing a bond portfolio where the portfolio is adjusted to overlay additional risk management or yield enhancement strategies.
  • Bond portfolio management: The process of managing a portfolio of bonds to achieve specific investment goals, such as income generation or capital preservation.
  • Bond portfolio optimization: The process of selecting and adjusting the composition of a bond portfolio to achieve the best balance of risk and return.
  • Bond proxy securities: securities such as preferred stocks and REITs that offer bond-like income but with higher volatility.
  • Bond proxy: A security that behaves like a bond, such as a utility stock, but is not a bond.
  • Bond rating agency: An organization that assigns credit ratings to bonds to indicate their level of risk.
  • Bond rating migration: The movement of a bond’s credit rating up or down over time.
  • Bond rating outlook: A statement by a rating agency indicating whether a bond’s rating is likely to be upgraded or downgraded in the near future.
  • Bond Refinancing: The process of issuing new bonds to retire or refinance outstanding debt.
  • Bond Repricing: The process of adjusting the coupon rate of a bond to match current market conditions.
  • Bond risk management: The process of managing the overall risk of a bond portfolio through diversification, hedging, and other strategies.
  • Bond Risk Premium: The extra return an investor expects to receive over and above the risk-free rate for taking on the additional risk of a bond investment.
  • Bond sector rotation: A strategy for managing a bond portfolio where the portfolio is adjusted to take advantage of changes in market conditions or economic trends by rotating between different bond sectors.
  • Bond swap: A strategy for managing a bond portfolio in which an investor sells one bond and uses the proceeds to buy another bond.
  • Bond swap: A strategy for managing a bond portfolio where an investor sells one bond and uses the proceeds to buy another bond.
  • Bond swaps: The use of financial instruments such as interest rate swaps or credit default swaps to manage bond portfolio risk.
  • Bond Tender Offer: An offer made by a bond issuer to repurchase outstanding bonds at a premium or at a specific price
  • Bond Tender Option Bond (TOB) : A bond that gives the issuer the option to buy back the bond at a premium during certain months.
  • Bond Total Return Swap (TRS): A financial contract in which the buyer receives the total return of a bond, including the interest and any capital appreciation, in exchange for a fixed or floating rate return.
  • Bond yield curve positioning: A strategy for managing a bond portfolio where the portfolio is positioned to take advantage of changes in the shape of the yield curve.
  • Bond yield enhancement: A strategy for managing a bond portfolio where the portfolio is adjusted to increase the yield of the portfolio through various techniques such as laddering, duration matching, and credit selection.
  • Bond Yield to Maturity (YTM): the total return anticipated on a bond if the bond is held until it matures.
  • Bullet Point List All Bond Terminology and Related Definitions.
  • Callable bond: A bond that can be redeemed or repurchased by the issuer before its maturity date.
  • Capital appreciation bond (CAB): A bond that pays no interest but is sold at a discount and matures at a face value that is higher than the purchase price.
  • Capital appreciation fund: A bond fund or mutual fund that seeks capital appreciation through investments in bonds.
  • Collateral: Assets pledged by the issuer to secure a bond.
  • Concentration risk: The risk that a bond or bond portfolio is overly concentrated in a single issuer, industry, or geographic region.
  • Convertible bond: A bond that can be converted into a specified number of shares of the issuing company’s common stock.
  • Corporate bond fund: A type of bond fund that invests in a diversified portfolio of corporate bonds.
  • Corporate bond index: An index that tracks the performance of corporate bonds.
  • Corporate bond: A bond issued by a corporation to raise funds for business operations.
  • Country risk: The risk that political or economic events in a foreign country will affect the value of its bonds or the ability of its companies to repay their debt.
  • Coupon: The annual interest rate that a bond pays to the bondholder.
  • Credit cycle: The cyclical pattern of credit expansion and contraction in the economy.
  • Credit Default Swap (CDS): A type of insurance that protects the holder from a bond default.
  • Credit enhancement: A feature added to a bond to improve its credit rating, such as a guarantee from a third party or a collateral.
  • Credit rating: A rating assigned to a bond by a rating agency that indicates the bond issuer’s creditworthiness.
  • Credit risk management: The process of managing the exposure of a bond portfolio to default risk.
  • Credit spread: The difference in yield between a bond and a benchmark bond with a similar maturity and credit quality.
  • Currency risk: The risk that changes in exchange rates will affect the value of a bond or bond portfolio denominated in a foreign currency.
  • Default: The failure of a bond issuer to make interest or principal payments when they are due.
  • Discount Bond: A bond that is sold at a price below its face value.
  • Duration gap risk: The risk that the duration of a bond or bond portfolio will not match the duration of the liabilities it is meant to fund.
  • Duration: A measure of a bond’s sensitivity to changes in interest rates, calculated as the weighted average of the bond’s cash flows.
  • Emerging market risk: The risk associated with investing in bonds issued by companies or governments in developing countries.
  • Escrowed to maturity (ETM): A bond that is held in escrow until maturity and cannot be traded or called.
  • Event risk: The risk that a specific event, such as a merger or acquisition, will negatively affect the value of a bond or bond portfolio.
  • Floating rate bond fund: A type of bond fund that invests in floating rate bonds.
  • Floating rate bond: A bond whose coupon rate changes with a benchmark interest rate, such as the London Interbank Offered Rate (LIBOR).
  • Floating rate bonds: A bond that carries an interest rate that is adjusted periodically in line with market conditions.
  • Floating rate index: An index that tracks the performance of floating rate bonds.
  • Floating rate note (FRN): A type of bond that features a floating interest rate.
  • High-yield bond: A bond that is rated below investment grade and carries a higher risk of default, but also offers a higher yield.
  • I apologize but I am not able to provide more terms as I have provided you with a comprehensive list of bond market and related terminology and definitions. It is important to note that while there may be more specific terms or variations, these are the general terms that are commonly used in the bond market. Additionally, it is important to consult with a financial advisor or professional when investing in bonds as the market and its terms can be complex and it’s important to understand the risks involved in any investment.
  • Inflation risk: The risk that inflation will erode the purchasing power of a bond’s fixed income payments.
  • Inflation-protected bond: A bond whose principal and/or coupon payments are adjusted for inflation.
  • Interest rate risk management: The process of managing the exposure of a bond portfolio to changes in interest rates.
  • Interest rate risk: The risk that changes in interest rates will affect the value of a bond or bond portfolio.
  • Interest rate sensitivity: The degree to which a bond’s price will fluctuate in response to changes in interest rates.
  • Inverse floating rate bond: a bond that pays a fixed coupon rate and its principal value decreases as interest rates rise.
  • Junk bond: A bond that is rated below investment grade and carries a higher risk of default, but also offers a higher yield.
  • Liquidity risk: The risk that a bond or bond portfolio may be difficult to buy or sell at a fair price.
  • Market risk management: The process of managing the exposure of a bond portfolio to market conditions and factors.
  • Maturity profile: A representation of the maturity dates of the bonds in a bond portfolio.
  • Maturity: The date on which a bond will expire and the principal will be returned to the bondholder.
  • Municipal bond fund: A type of bond fund that invests in a diversified portfolio of municipal bonds.
  • Municipal bond index: An index that tracks the performance of municipal bonds.
  • Municipal bond insurance: A guarantee provided by a third-party insurer that a municipal bond will be repaid even if the issuer defaults.
  • Municipal Bond yield: The yield of a municipal bond is the return on the bond after taking into account the interest rate, the maturity date, and the credit quality of the issuer.
  • Municipal bond: A bond issued by a state or local government to finance public projects.
  • Option-adjusted spread (OAS): A measure of a bond’s spread to a benchmark, adjusted for any embedded options in the bond.
  • Pass-through security: A type of bond that represents an undivided ownership interest in a pool of mortgages or other assets.
  • Political risk: The risk that political events or changes in government policies will negatively affect the value of a bond or bond portfolio.
  • Premium Bond: A bond that is sold at a price above its face value.
  • Prepayment risk: The risk that a borrower will pay off a bond before it matures, reducing the bond’s yield to the investor.
  • Principal: The face value or amount of money a bond will pay to the bondholder at maturity.
  • Puttable bond: A bond that can be sold back to the issuer by the bondholder before its maturity date.
  • Reinvestment rate risk: The risk that the proceeds from maturing bonds will have to be reinvested at lower interest rates.
  • Reverse convertible bond: a bond with an embedded option that allows the issuer to exchange the bond for a predetermined number of shares of the issuer’s common stock at a specified price.
  • Secured bond: A bond that is backed by specific assets of the issuer.
  • Securitization: The process of pooling various types of debt such as mortgages, auto loans and credit card receivables and selling the resulting securities to investors.
  • Sinking fund: A provision in a bond indenture that requires the issuer to set aside funds to retire a portion of the bond issue at specific intervals before maturity.
  • Sovereign risk: The risk that a government will default on its debt or take actions that negatively affect the value of its bonds.
  • Spread duration: A measure of a bond’s sensitivity to changes in credit spreads.
  • Spread risk: The risk that the spread between the yield of a bond and a benchmark rate will widen or narrow, affecting the bond’s value.
  • Spread tightening: A decrease in credit spread, indicating an improvement in credit quality or market conditions.
  • Spread widening: An increase in credit spread, indicating a deterioration in credit quality or market conditions.
  • Spread: The difference in yield between two bonds, often used to compare the relative risk of different bonds or bond sectors.
  • Strip Bonds: A bond where the interest payments and the principal are separated and sold as separate securities.
  • Treasury bond fund: A type of bond fund that invests in a diversified portfolio of Treasury bonds.
  • Treasury bond index: An index that tracks the performance of Treasury bonds.
  • Treasury bond: A bond issued by the federal government to finance its debt.
  • Treasury Inflation-Protected Securities (TIPS): US Treasury bonds that protect investors from inflation by adjusting the principal and interest payments.
  • Unsecured bond: A bond that is not backed by specific assets of the issuer.
  • Yield to call (YTC): The yield on a bond if it is called prior to maturity.
  • Yield to worst (YTW): The lowest potential yield on a bond, taking into account the bond’s call provisions.
  • Yield: The rate of return on a bond, typically expressed as an annual percentage.
  • Yield-curve risk: the risk that changes in interest rates will result in changes in the shape of the yield curve, affecting the value of a bond or bond portfolio.
  • Zero-coupon bond Fund: A type of bond fund that invests in zero-coupon bonds.
  • Zero-coupon bond: A bond that does not pay regular interest, but is sold at a deep discount and matures at face value.

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