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- Y
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Fifth letter of a
NASDAQ stock symbol specifying that it is an A.D.R.
- Yankee bonds
- Foreign
bonds denominated in US$
issued in the United States by foreign banks and corporations. These bonds are usually registered with the
S.E.C.
For example,
bonds
issued by originators with roots in Japan are called
Samurai bonds.
- Yankee CD
- A
CD
issued in the
domestic market, typically New York, by a branch of a foreign bank.
- Yankee market
- The
foreign market
in the United States.
- Yard
- Slang for one billion currency units. Used particularly in currency trading, e.g. for Japanese yen since on billion yen only equals approximately US$10 million. It is clearer to say, "I'm a buyer of a yard of yen," than to say, "I'm a buyer of a billion yen," which could be misheard as, "I'm a buyer of a million yen."
- Yield
- The percentage rate of
return paid on a
stock in the form of
dividends, or the effective rate of
interest paid on a
bond or
note.
- Yield curb
- Mainly applies to convertible securities. Difference in
current yield between the convertible and the
underlying
common.
- Yield curve
- The graphical depiction of the relationship between the
yield on
bonds of the same credit quality but different
maturities. Related:
Term structure of interest rates.
Harvey (1991)
finds that the inversions of the yield curve (short-term rates greater than
long term rates) have preceded the last five U.S. recessions. The yield curve
can accurately forecast the turning points of the business cycle.
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Yield curve
option-pricing models
- Models that can incorporate different
volatility assumptions along the
yield curve, such as the Black-Derman-Toy model. Also called
arbitrage-free option-pricing models.
- Yield curve strategies
-
Positioning a
portfolio to capitalize on expected changes in the shape of the Treasury
yield curve.
- Yield differential/pickup
- Mainly applies to convertible securities. Graph showing the
term structure of interest rates by plotting the
yield of all
bonds of the same quality with
maturities ranging from the
shortest to the longest available.
- Yield ratio
- The quotient of two
bond yields.
- Yield spread strategies
- Strategies that involve
positioning a
portfolio to capitalize on expected changes in
yield spreads between sectors of the
bond
market.
- Yield to call
- The percentage rate of a
bond
or
note, if you were to
buy and hold the
security until the
call date. This
yield is valid only if the security is called prior to
maturity. Generally bonds are
callable over several years and normally are called at a slight
premium. The calculation of yield to
call is based on the
coupon rate, length of time to the call and the
market price.
- Yield to maturity
- The percentage
rate of return
paid on a
bond,
note or other fixed income
security if you
buy and hold it to its
maturity date. The calculation for YTM is based on the
coupon rate, length of time to
maturity and
market price. It assumes that coupon
interest paid over the life of the
bond will be reinvested at the same rate.
- Yield to warrant call
- Mainly applies to convertible securities.
Effective yield of usable or
synthetic
convertible bonds determined against the first date at which the
warrants can be
called.
- Yield to warrant expiration
- Mainly applies to convertible securities.
Effective yield of usable
converbile bonds determined by the
expiration date of the applicable
warrants.
- Yield to worst
- The
bond
yield computed by using the lower of either the
yield to maturity or the yield to
call on every possible
call date.
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