1. A representative measure of a range of prices that is calculated by taking the sum of the values and dividing it by the number of prices being examined…

The interest a person or trader shows in buying or selling a bond. A trader may have specific interest in a certain type of bond based on his or her existing…

Bonds rated Ba3/BB- are generally considered speculative in nature and are not considered to be investment-grade bonds suited for people wishing to avoid…

Any bond issued with a par value less than $1,000. Baby bonds are usually issued by corporations that lack access to large institutional markets. These…

A zero-coupon bond issued by certain states to assist families save for college tuition by means of added tax benefits. These bonds are typically issued…

A debt security issued by the Resolution Funding Corporation to bail out the savings and loan associations during the financial crisis of the late 1980s…

An increased coupon rate on the longer term maturity instruments within a serial bond issue. In a serial issue, bonds mature at different intervals, creating…

1. A repayment schedule for a bond issue where a large number of the bonds come due at a one time (normally at the final maturity date). 2. A final loan…

A benchmark interest rate quoted and dispersed by Reuters Information Service. The BBSY is typically used by financial institutions or corporations engaging…

A quoting convention used by financial institutions when quoting prices for fixed-income securities sold at a discount, particularly U.S. Government issues…

A security with an interest rate guaranteed by a bank. It provides a specific yield on a portfolio over a specified period.A BIC is a relatively safe…

A short-term credit investment created by a non-financial firm and guaranteed by a bank. Acceptances are traded at a discount from face value on the…

The risk that a company will be unable to meet its debt obligations. Often referred to as "default" or "insolvency risk". This is a risk that both equity…

A bond investment strategy that concentrates holdings in both very short-term and extremely long-term maturities. This is also known as the "dumbbell"…

A confidence indicator calculated by dividing the average yield on high-grade bonds by the average yield on intermediate-grade bonds. The discrepancy…

A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes…

Price quotation for a security expressed in terms of yield to maturity. This will usually only be quoted on fixed-income securities such as bonds.For…

A yield-rate environment in which short-term interest rates are increasing at a faster rate than long-term interest rates. This causes the yield curve…

A widening of the yield curve caused by long-term rates increasing at a faster rate then short-term rates. This causes a larger spread between the two…

A fixed-income instrument that is owned by whoever is holding it, rather than having a registered owner.  Coupons representing interest payments are likely…

A security not registered in the issuing corporation's books but that is payable to its bearer (the person possessing it). Securities can be issued in…

A bearer instrument, or bearer bond, is a type of fixed-income security where no ownership information is recorded and the security is issued in physical…

A term describing a bond whose price is below the face value or principal value, usually $1,000. As bond prices are quoted as a percentage of face value…

A bond that provides a standard against which the performance of other bonds can be measured. Government bonds are almost always used as benchmark bonds…

When the sale of a mortgage in the secondary mortgage market requires that the seller, usually a mortgage originator, make a "best efforts" attempt to…

A theory that the future value of interest rates is equal to the summation of market expectations. Proponents of the biased expectation theory argue that…

A debt secured by a bidder for a construction job or similar type of bid-based selection process for the purpose of providing a guarantee to the project…

An announcement published by the U.S. Treasury regarding the next bill auction. This announcement outlines the terms of the bill auction. Bill announcements…

A public auction for Treasury bills that is held weekly by the U.S. Treasury. Currently there are 17 authorized primary dealers that are required to bid…

A non-interest-bearing written order used primarily in international trade that binds one party to pay a fixed sum of money to another party at a predetermined…

A graphical representation of possible intrinsic values that an option may take at different nodes or time periods. The value of the option depends on…

When brokerage firms ensure anonymity to both the buyer and the seller in a transaction. In the ordinary course of securities trading, most brokerage…

The difference between the market value of a security and its sale price when transacted under a block trade. Each blockage discount is negotiated by…

A daily digest of municipal and corporate bond offerings, market commentaries, fixed-income statistics and other bond information. The blue list is used…

A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed…

A short-term interest-bearing security issued in the anticipation of larger future bond issues. Bond anticipation notes are smaller short-term bonds…

A lawyer who represents the bondholders' interests during a bond offering and who prepares the legal opinion attesting that the issue is legal, valid…

A broker who executes over-the-counter bond trades between institutional investors (bond traders). Bond brokers act as an intermediary between institutional…

An average yield on a particular day of 11 selected general obligation municipal bonds with an average 'AA' rating, maturing in 20 years. It is comprised…

A representation of municipal bond trends based on a portfolio of 20 general obligation bonds that mature in 20 years. The index is based on a survey…

An index published by The Bond Buyer, a daily finance newspaper that covers the municipal bond market. Investors use the Bond Buyer Index to plot interest…

A standardized legal document that contains an abbreviated version of the relevant terms from the prospectus of a new bond issue. The bond circular is…

A slang term used to describe members of the stock exchange that transact bond orders from the floor of the exchange. The label “bond crowd” differentiates…

The amount by which the market price of a bond is lower than its principal amount due at maturity. This amount, called its par value, is often $1,000…

A metric used to evaluate the relationship between bond yields and earnings yields in the stock market. The Bond Equity Earnings Yield Ratio (BEER) has…

A calculation for restating semi-annual, quarterly, or monthly discount-bond or note yields into an annual yield. For a fixed income security with a par…

A fund invested primarily in bonds and other debt instruments. The exact type of debt the fund invests in will depend on its focus, but investments may…

A type of insurance policy that a bond issuer purchases that guarantees the repayment of the principal and all associated interest payments to the bondholders…

A strategy for managing fixed-income investments by which the investor builds a ladder by dividing his or her investment dollars evenly among bonds or…