The Bond Market Association merged with the Securities Industry Association in 2006 to form the Securities and Financial Markets Association (SIFMA), which advocates for the interests of banks and private companies in the US. SIFMA addresses issues such as regulatory reform, savings and retirement, capital markets, and bond markets, and provides professional services to its […]
The Bond Market Association (BMA) merged with the Securities Industry Association (SIA) in 2006 to form the Securities and Financial Markets (SIFMA), an international not-for-profit association representing approximately 200 companies that bought, sold and traded debt securities. SIFMA addresses various issues that are relevant to its members, including regulatory reform, savings and retirement, capital markets, […]
US savings bonds, including Series EE and Series I, are taxed at the federal level but not at the state or local level. Series EE is a fixed interest rate accumulation bond, while Series I earns a fixed rate plus a variable inflation rate. Both bonds must be held for 12 months before redemption, and […]
Junk bonds are high-interest loans with unfavorable terms to offset high risk of default. They are rated BB or lower and are traded like commodities. Some companies manipulate their debt to receive a higher rating. Junk bonds are used in all sectors requiring significant capital and play a role in leveraged buyouts and hostile takeovers. […]
The zero coupon bond yield is calculated using the present value equation and solving for the discount rate, which reveals the market situation and expected rate of return. It helps investors decide whether to invest in bonds, which are notes that companies sell to raise money. Zero coupon bonds only have one payment at maturity […]
Financial ratios are used to assess a company’s financial strength or weakness. Market ratios determine a company’s value as an investment, while liquidity ratios show the rate of assets that can be quickly converted into cash. Activity ratios measure how quickly assets can be turned into sales or cash, and debt ratios show how much […]
Bonds are mainly traded over-the-counter, making the process complex. Bond brokers serve as intermediaries between buyers and sellers, but there is no central market to determine a bond’s value. Researching past trades can help investors determine a bond’s true value. Investing in bonds can be a complex process. This is because, unlike stocks, bonds are […]
Agency bonds are issued by government-sponsored financial entities, such as Fannie Mae and Sallie Mae, for specific purposes like education and home purchase. They are subject to federal tax and not guaranteed by the government. The duration and amount of the bond can be determined with a financial advisor. An agency bond is a type […]
Building a good relationship with in-laws takes time and effort. Remember your role in the family dynamics, find common interests, and focus on those in-laws with whom you can build a healthy relationship. Maintain a good relationship with your spouse to maintain a good relationship with your in-laws. The clichéd presentation of in-laws as obnoxiously […]
A bond option is a financial derivative that allows the holder to buy or sell a bond at a specified price. There are two types of options, call and put, and they can be American or European. The price is determined using the Black-Scholes method. A bond option is a financial derivative. It gives the […]
The Lehman Aggregate Bond Index, now known as the Barclays Capital Aggregate Bond Index, tracks the performance of most investment-grade bonds in the US, including government-backed and corporate bonds, and is weighted by market capitalization. Investors cannot directly invest in the index, but there are index-based funds available. The Lehman Aggregate Bond Index is the […]
Short-term bond ETFs are a type of liquid fund that invests in short-term debt, offering less risk than long-term bonds. Investors should consider costs, chances of default, and how it fits with their other investments. The short-term bond ETF is a specific type of fund that plays with a particular strategy for investing in short-term […]
Corporate bond funds hold various debt or bond instruments, with different levels of risk and rewards. Domestic funds contain investment grade debt, while junk funds contain low-rated bonds. Global funds offer diversity, while international funds focus on foreign bonds with higher interest rates. Corporate bond funds are mutual funds that hold a variety of debt […]
Bond ratings measure the security and quality of a bond issue, with factors including the financial condition and reputation of the issuer. Ratings services provide a final score ranging from AAA to D, and researching multiple sources is recommended for potential investors. Bond ratings are understood to be a means of measuring the security associated […]
Bond indices represent a company’s outstanding debt relative to its capitalization, used by analysts to determine risk for investors. A ratio of less than 30% leverage is favorable, and companies have criteria for issuing additional bonds based on the current bond ratio. The bond index is a good indicator of performance and should be monitored […]
The doctor-patient relationship can be positive, negative, or neutral and can be established through one-time or ongoing interactions. Strong communication skills and empathy improve the quality of care. Patients can contribute by being open and polite, while being informed about medicine can improve the relationship. The doctor-patient relationship, whether positive or negative, is established in […]
A judicial bond is a pledge to appear in court, often backed by a financial payment. If the defendant doesn’t appear, the money is forfeited. Bail bond agents can help, and the judge sets the amount based on the crime and defendant. A fee is charged for using a bail bondsman. A judicial bond is […]
A bond is a promise to repay a fixed amount of money with interest. Mortgage companies issue loans and sell them to financial institutions as mortgage bonds. If the borrower defaults, the financial institution may suffer a loss if the bond is worth more than the house. A bond is similar to a promissory note. […]
A bond circular is a document that provides detailed information about a bond offer, including the issuer’s reputation, offer size, coupon, expiration, redemption details, and offer price, to attract potential investors. Investors should verify the accuracy of the information before investing. A bonus circular is essentially a bonus offer made by an underwriter or a […]
An auto dealer bond ensures that a car dealer operates within state terms, including consumer protection laws and tax payments. It is an agreement between three parties: principal, obligee, and guarantor. The bond protects the buyer, and the penalty amount is the maximum the guarantor will pay in case of default. The premium amount is […]
