Exploring the Fixed Income Trading Strategy & Education Variable rate demand notes are a unique type of debt security that offers investors the flexibility of adjustable interest rates. Unlike traditional fixed-rate bonds, VRDNs have interest rates that change periodically based on market conditions. Investing in VRDNs can be a smart … …
What is a Variable Coupon Renewable Note (VCR)? A Variable Coupon Renewable Note (VCR) is a type of financial instrument that combines features of both fixed-income securities and variable-rate notes. It is a debt instrument issued by a corporation or government entity that pays periodic interest payments to the holder. … …
What are Unsecured Notes? Unsecured notes are a type of debt instrument that is issued by a company or government entity to raise capital. Unlike secured notes, unsecured notes are not backed by any specific collateral or assets. Instead, they are supported only by the creditworthiness and financial strength of … …
What is Yield Basis? Yield basis is a concept that is widely used in fixed income trading. It refers to the difference between the yield of a bond or other fixed income security and the yield of a benchmark security with a similar maturity. In simple terms, it is the … …
What is the Workout Period? The workout period is a term commonly used in the field of fixed income trading strategy and education. It refers to a specific period of time during which investors and traders can actively manage their fixed income portfolios to maximize returns and minimize risks. During … …
Theory of Liquidity Preference: History The theory of liquidity preference is an important concept in economics that was developed by John Maynard Keynes. It is a theory that explains how individuals and investors make decisions about holding money versus investing it in other assets. Keynes first introduced the theory in … …
What is Reinvestment Rate? The reinvestment rate is a financial concept that refers to the rate at which the cash flows generated by an investment are reinvested back into the same investment or other investments. It is an important factor to consider when evaluating the overall return on an investment. … …
What is Realized Yield? Realized yield is a financial concept that measures the actual return earned on an investment over a specific period of time. It takes into account both the income generated by the investment, such as interest or dividends, as well as any capital gains or losses realized … …
Exploring the Basics and Benefits Furthermore, the non-competitive tender process provides an opportunity for small investors to participate in government securities auctions. In a competitive tender, large institutional investors often dominate the market, making it difficult for individual investors to get a fair chance. Non-competitive tender levels the playing field … …
What are Noncallable Bonds? Noncallable bonds are often considered less risky than callable bonds because investors have the certainty of receiving the full face value at maturity. This makes them attractive to conservative investors who prioritize capital preservation. Noncallable bonds can be issued by governments, municipalities, and corporations. They are … …
Fixed Income Trading Strategy & Education Why Choose Our Program? What Will You Learn? By enrolling in our Fixed Income Trading Strategy & Education program, you will learn: 1. The fundamentals of fixed income trading 2. Various fixed income trading strategies 3. How to analyze fixed income securities 4. Risk … …
What is a Humped Yield Curve? A humped yield curve is a term used in finance to describe a yield curve that has a pronounced hump or bump in the middle. A yield curve is a graphical representation of the interest rates on debt for a range of maturities. It … …
Floating Charge Definition A floating charge is a type of security interest that allows a lender to have a claim on a borrower’s assets. It is a flexible form of security that can cover a range of assets, such as inventory, accounts receivable, and equipment. The charge “floats” over the … …
Barbell Investing Strategy: Definition The barbell investing strategy is a financial investment approach that involves dividing an investment portfolio into two distinct parts: one part with low-risk, low-return investments and another part with high-risk, high-return investments. This strategy is based on the concept of balancing the portfolio by combining safe … …
Average Life Calculation Formula Vs Maturity The average life calculation formula is a measure used to estimate the weighted average time it takes for a bond’s cash flows to be received. It takes into account both the timing and amount of each cash flow. This formula considers the possibility of … …
What is Accretion of Discount? Accretion of discount is a concept commonly used in fixed income trading. It refers to the process of gradually increasing the value of a bond or other fixed income security over time to its face value or par value. The accretion of discount is calculated … …