Legal Articles

Insurance that covers pleasure boats against collision, hull damage, and liability indemnity.

A note issued in US dollars by a foreign company in the market.

The spread gained by having convertible bonds instead of stock. Refer to simple breakeven.

When underwriters charge too much for treasury bonds that are held in escrow. This is done before retiring the existing bonds and is illegal. This causes the yield to burn down.

Plotting interest rates against maturities creating a term structure. In normal conditions it is a upward curve. This causes shortterm funds to cost less to invest in. The shape is influenced by money, liquidity, and derivatives. Refer to expectations the

A spread that allows payoff based on the differential between on point on the yield curve and the strike price. The buyer gains efficiency and cost advantages.

A strategy used to increase core returns. This is intended to be a low risk move. Refer to arbitrage speculation and hedging.

The yield of a callable bond. This is the percent return at the first call date. Refer to yield to maturity.

The yield of a coupon bearing security. It is the percent return of a bond when it finally matures. AKA promised yield. Refer to yield to call.