Standard Prepayment Model (sifma prepayment model).
Floating-rate cmmo tranche which pays an adjustable rate of flirty naughty poems for him interest tied to a representative interest rate index such as the London Interbank Offered Rate (libor the Constant Maturity Treasury (CMT or the Cost of Funds Index (cofi).Withholding tax, federal income tax, state and local tax, foreign tax, transaction taxes, estate or death taxes.A bond that has a lower priority than another bonds claim to the same assets.Strips Separate Trading of Registered Interest and Principal of Securities.The most commonly used measure of interest rate risk is duration.This is due to how the ETFs manager handles premium amortization.Because futures are complicated and risky, with the potential for losses not limited to your original investment, futures products are not suitable for many individual investors.Grantor trust A special-purpose vehicle set up to issue fixed-rate capital securities and use the proceeds to purchase debt of the parent company.Investment-grade bond (or high grade bond).Double-barreled bond A bond is said to be double-barreled when it is secured by the pledge of two (or more) sources of payment.Default A failure by an issuer to: (i) pay principal or interest when due, (ii) meet non-payment obligations, such as reporting requirements, or (iii) comply with certain covenants in the document authorizing the issuance of a bond (an indenture).
Coupon rate The interest rate on a bond, expressed as a percentage of the bond's face value.
The Treasury guarantees that Series EE bonds will mature at full face value in no more than 17 years.
Breaking down 'Bond bonds are commonly referred to as fixed-income securities and are one of the three main generic asset classes, along with stocks (equities) and cash equivalents.
Interest on municipal (muni) bonds often is tax favored for.S.To find out the yield of a target maturity bond ETF, you might be tempted to look at the weighted average coupon-which is calculated by weighing the coupon of each bond in the portfolio by its relative size.In contraction risk, the average time that it takes for the investor to get principle back is what is being contracted.Dated date (or issue date) The date of a bond issue from which a bond begins to accrue interest.In the event of default, secured lenders can force the sale of such assets to meet their claims.
Tax Anticipation Note (TAN) TANs are issued by states or local governmental units to finance current operations in anticipation of future tax receipts.