What’s a corp bond match?

Corporate bond equivalents compare the yield of corporate bonds, typically by comparing the rate of return on bonds that provide interest payments semiannually and annually. The process requires similar initial investments and consideration of interest rates and payment schedules. Refinements include considering small differences in initial investments and finding an average of interest rates. Corporate […]

What’s a Bond Market Association?

The Bond Market Association (BMA) merged with the Securities Industry Association in 2006 to form the Securities Industry and Financial Markets Association (SIFMA). The BMA coordinated transactions and represented around 200 companies that traded debt securities. SIFMA is the US branch of the Global Financial Markets Association and addresses issues relevant to its members, including […]

Corporate bond index?

An index of corporate assets measures the returns of a collection of corporate assets, providing a reference point for financial managers and investors. Corporate bonds with longer maturities are included, and the index provides a uniform measure of bond risks. The Lehman Brothers corporate/government fund index is a famous example. Investors can also look at […]

Bond ladder: what is it?

A bond ladder is a strategy to minimize risks associated with fixed income securities by investing in a collection of bonds with different maturity rates. It allows for cash flow control and protection from interest rate fluctuations. The ladder’s height, rungs, and material can be adjusted to diversify the bond portfolio and balance risk and […]

What factors affect savings bond value?

Bonos de ahorro are debt instruments issued by governments worldwide. Their value depends on interest rates and inflation, and some are negotiable. Buyers lend money to the issuer and receive interest payments. Some bonds are protected against inflation, while others can lose value. Some bonds are not negotiable, but others can be sold before maturity. […]

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