Tag: curve

Heath-Jarrow-Morton Model (HJM Model)

What is 'Heath-Jarrow-Morton Model - HJM Model' A model that applies forward rates to an existing term structure of interest rates to determine...

Yield To Average Life

What is 'Yield To Average Life' The yield on a fixed-income security when the average maturity is substituted for the maturity date...

Yield Pickup

What is 'Yield Pickup' The additional interest rate an investor receives when selling a lower-yielding bond in exchange for a higher-yielding bond....

Yield Curve Risk

What is the 'Yield Curve Risk' The yield curve risk is the risk of experiencing an adverse shift in market interest rates...

Yield On Cost (YOC)

What is 'Yield On Cost - YOC' The annual dividend rate of a security divided by the average cost basis of the...

Yield Tilt Index Fund

What is 'Yield Tilt Index Fund' A type of mutual fund that allocates capital as a standard index, by replicating the holdings...

Yield Equivalence

What is 'Yield Equivalence' The interest rate on a taxable security that would render a return equivalent to that of a tax-exempt...

Yield-Based Option

What is 'Yield-Based Option' A type of debt-instrument-based option that derives its value from the difference between the exercise price and the...

Yield Elbow

What is 'Yield Elbow' The point on the yield curve indicating the year in which the economy's highest interest rates occur. The...

Yield Curve

A yield curve depicts interest rates of bonds having different maturities, but same credit quality, at a specific point in time. The yield curve...

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