Sign in Subscribe

Topic

fixedincome

A collection of 9 issues

What Is a Step-Up Bond and When Is It Issued?

Introduction In a world where interest rates can rise and fall quickly, investors continuously search for bonds that offer protection against inflation and the opportunity for growing income. One popular solution is the step-up bond. Because its coupon rate "steps up" at pre-defined intervals, this debt instrument can

What Is a Floating-Rate Note (FRN)?

Introduction In an environment where interest rates rarely sit still for long, investors constantly search for ways to protect their fixed-income portfolios from sudden swings. One increasingly popular solution is the floating-rate note, commonly shortened to FRN. Unlike traditional bonds that lock in a static coupon for the life of

What Is Basis Point Value (BPV)? A Complete Guide for Traders and Investors

Introduction to Basis Point Value In today’s fast-moving financial markets, small changes in interest rates can translate into large gains or losses for fixed-income portfolios. Traders, portfolio managers, and risk analysts therefore rely on concise metrics to quantify and manage interest-rate exposure. One of the most important of these

Option-Adjusted Spread (OAS): A Practical Guide for Bond Investors

What Is Option-Adjusted Spread? Option-Adjusted Spread, commonly abbreviated as OAS, is a yield-spread measurement that adjusts for embedded options in fixed-income securities. It expresses the extra yield investors demand over a comparable Treasury curve after stripping out the value of call, put, or prepayment features. Why OAS Matters to Investors

Understanding Key Rate Duration: A Precision Risk Tool for Bond Investors

Introduction Within the fixedincome arena, investors continually gauge how prices will respond to shifting interest rates. Key Rate Duration (KRD) is a granular metric that pinpoints sensitivity at specific maturities along the yield curve, giving portfolio managers an Xray view of hidden risks that aggregate duration can miss.

Understanding Junk Bonds: High Yield, Higher Risk

What Is a Junk Bond? Junk bonds, also known as high-yield bonds, are corporate debt securities that carry a credit rating below investment grade (BB+ or lower by Standard & Poor’s, Ba1 or lower by Moody’s). Because issuers have a greater chance of defaulting, investors demand larger coupon

What Is an Investment-Grade Bond? Definition, Benefits & Risks

What Is an InvestmentGrade Bond? An investmentgrade bond is a fixedincome security issued by corporations, municipalities, or governments that carries a relatively low risk of default because it has received a high credit rating from agencies such as S&P, Moodys, or Fitch. Investors value

Outcome-Oriented Fixed-Income ETFs: Designing ‘Target Maturity’ Portfolios

Introduction: The Rise of Outcome-Oriented Fixed-Income ETFs The exchange-traded fund (ETF) marketplace has evolved far beyond simple index replication. Today, investors can fine-tune exposure to match specific objectives, time horizons, and risk tolerances. One of the fastest-growing segments in this space is outcome-oriented fixed-income ETFs, particularly those that employ a

Asset-Backed Security (ABS): A Complete Overview

What Is an Asset-Backed Security? Asset-backed securities (ABS) are bonds or notes backed by pools of income-generating assets—such as auto loans, credit-card receivables, or residential leases. By transforming illiquid obligations into tradable fixed-income instruments, ABS give issuers faster access to capital and investors new diversification tools. Understanding how ABS