Tag: bond

Market Basket definition explanation

What is Market Basket?
A subset of products or securities that is designed to mimic the performance of an overall market. Market baskets contain a fixed selection of items, which are used to track such things as inflation, prices or performance levels. Read more for examples and further explanation including related video clips and also comments
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Broad Liquidity definition explanation

What is Broad Liquidity?
A category of the money supply which includes: all funds in M3, individual holdings in accounts, savings bonds, T-bills with maturity of less than one year, commercial papers, and banker’s acceptances. Read more for examples and further explanation including related video clips and also comments
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Bid Wanted In Competition – BWIC definition explanation

What is Bid Wanted In Competition – BWIC?
A situation where an institutional investor submits its bond bid list to various securities dealers. In a bid-wanted-in-competition situation, the dealers are allowed to make bids on the listed securities. The dealers with the highest bids are then contacted. Read more for examples and further explanation including related video clips and also comments
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Treasury Investment Growth Receipts – TIGRs definition explanation

What is Treasury Investment Growth Receipts – TIGRs?
Introduced by Merrill Lynch, TIGRs are stripped Treasury securities offered at a significant discount to face value and backed by the U.S. government. TIGRs were originally issued between 1982 and 1986. They became obsolete when the U.S. government began issuing public STRIPS in 1986. Read more for examples and further explanation including related video clips and also comments
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Series EE Bond definition explanation

What is Series EE Bond?
A non-marketable, interest-bearing U.S. government savings bond that is guaranteed to at least double in value over the initial term of the bond, typically 20 years. Most Series EE bonds have a total interest-paying life that extends beyond the original maturity date, up to 30 years from issuance. Read more for examples and further explanation including related video clips and also comments
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Reverse Convertible Bond – RCB definition explanation

What is Reverse Convertible Bond – RCB?
A bond that can be converted to cash, debt or equity at the discretion of the issuer at a set date. The bond contains an embedded derivative that allows the issuer to put the bond to bondholders at a set date prior to the bond’s maturity for existing debt or shares of an underlying company. The underlying company need not be related in any way to the issuer’s business. These types of bonds usually have shorter terms to maturity and higher yields than most other bonds because of the risk involved for investors, who may be forced to redeem their bonds for securities in a company that have, or are expected to, decrease substantially in value. Read more for examples and further explanation including related video clips and also comments
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