Primary market (new-issue market) Market for new issues of municipal bonds and notes.
This was called a tap issue or bond tap.
Certain authorities issue bonds on their own behalf, such as transportation or power authorities.Example: Calculating Yield to Maturity Through Trial-and-Error.Industrial revenue bond A security issued by a state, political subdivision or certain agencies or authorities, for certain specific purposes, but backed by the love sex dan dating credit of a private enterprise.Primary issuance is arranged by bookrunners who arrange the bond issue, have direct contact with investors and act as advisers to the bond issuer in terms of timing and price of the bond issue.Coupon rate The interest rate on a bond, expressed as a percentage of the bond's face value.PO (principal-only) security In the case of a CMO, a PO tranche is created deliberately to pay investors principal only and not interest.Upper Saddle River, New Jersey 07458: Pearson Prentice Hall.The manager signs the contracts on behalf of the account and generally receives either a fee or a slightly larger spread for its services in this capacity.A treasury bond is backed by the full faith and credit of the relevant government.
An American callable can be called at any time until the maturity date.
That relationship is the definition of the redemption yield on the bond, which is likely to be close to the current market interest rate for other bonds with similar characteristics.A repo involves an agreement between a seller and a buyer, typically.S.Ginnie Mae I Pass-through mortgage securities on which registered holders receive separate principal and interest payments on each of their certificates.Book entry A method of registering and transferring ownership of securities electronically which eliminates the need for physical certificates.Stated maturity The last possible date on which the last payment of the longest loan may be paid.Prices, or rate of inflation, of over 218 during the time he held the security.The purpose is to provide better market access for small, lesser-known issuers.New-issue market Market for new issues of bonds and notes.Par Price equal to the face amount of a security; 100.Collar Upper and lower limits (cap and floor, respectively) on the interest rate of a floating-rate security.When an account is made up of several groups of underwriting firms that normally function as separate accounts, the larger account is often managed by several underwriters, usually one from each of the several groups, and these managers are referred to as joint managers." jumbo.
For example, the spread between a 10-year Treasury yielding.75 and a 10-year corporate yielding.25 is 50 basis points.