What are convertible and exchangeable bonds?
An embedded option in a corporate bond, usually subordinated debentures, granting holders the right to convert the security into a predetermined number of shares of a certain class...
A cash distribution of net income after taxes by a company to its shareholders is a cash dividend. It is commonly expressed as a certain amount of money per share for common stock...
What are capital, pre-tax and after-tax returns?
Performance figures can cover a rolling period, whether annually, monthly, weekly or daily. Rolling returns are a fund’s total returns reported in an overlapping series of rolling...
What are capital requirements?
Credit risk is the dominant source of risk for banks and leasing companies. The amount of capital in relation to risk weighted assets required by regulatory authorities that finan...
What are benchmark yield curves?
The US Treasury yield curve plots the rates that are interpolated by the US Treasury Department from the daily yield curve – constant maturity treasury (CMT) rates – calculated fro...
What are bank discount yield (BDY) and effective annual yield (EAY)?
Bank discount yield (BDY) is the annualized discount rate expected from the face value of a money market instrument on a 360-day simple interest basis (i.e., without compounding) e...
What are asset-backed securities (ABSs)?
An asset-backed security (ABS) is a marketable security that is issued by a special purpose vehicle (SPV) that buys financial receivables, such as automotive leases and consumer lo...
An unsponsored ADR (UADR) is an American depositary receipt (ADR) that is issued by a US depositary bank in an unsponsored program without the contractual involvement of the issuer...
Investment Funds Images & Tables
The Key Parties in a Mutual Fund and Their Roles Board of Directors Fund Manager Principal Underwriter Fund Administrator Fund Transfer Agent Fund Custodian Oversees fund managemen...
How is yield in different markets measured?
The yield on a money market instrument depends on whether it is a discount instrument or add-on instrument. Discount instruments, such as Euronotes and often Euro-CP, are issued a...
