Skip to content
Reference

Fixed Income

The language of markets, defined plainly — the terms our coverage uses and what they actually mean.

B

Bond
A loan to a government or company that pays interest and returns the principal at maturity. Bondholders rank ahead of shareholders if the issuer fails.

Y

Yield
The income an asset produces as a percentage of its price. For a bond held to maturity, yield to maturity also accounts for any gain or loss against the price paid.