Tag: bond

Zacks Lifecycle Indexes definition explanation

What is Zacks Lifecycle Indexes?
A series of indexes developed by Zacks Investment Research, Inc., to provide a benchmark for the lifecycle of target-date funds, with a different index for each target date. The Zacks Lifecycle Index constituents include U.S. equities, international equities, and domestic bonds. Read more for examples and further explanation including related video clips and also comments
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Credit Quality definition explanation

What is Credit Quality?
One of the principal criteria for judging the investment quality of a bond or bond mutual fund. As the term implies, credit quality informs investors of a bond or bond portfolio’s credit worthiness, or risk of default.

Also known as a “”bond rating.”” Read more for examples and further explanation including related video clips and also comments
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Speculator definition explanation

What is Speculator?
A person who trades derivatives, commodities, bonds, equities or currencies with a higher-than-average risk in return for a higher-than-average profit potential. Speculators take large risks, especially with respect to anticipating future price movements, in the hope of making quick, large gains. Read more for examples and further explanation including related video clips and also comments
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Ringfencing definition explanation

What is Ringfencing?
When a regulated public utility business financially separates itself from a parent company that engages in non-regulated business. This is done mainly to protect consumers of essential services such as power, water and basic telecommunications from financial instability or bankruptcy in the parent company resulting from losses in their open market activites. Ringfencing also keeps customer information within the public utility business private from the for-profit efforts of the parent company’s other business. Read more for examples and further explanation including related video clips and also comments
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Bailout definition explanation

What is Bailout?
A situation in which a business, individual or government offers money to a failing business in order to prevent the consequences that arise from a business’s downfall. Bailouts can take the form of loans, bonds, stocks or cash. They may or may not require reimbursement. Read more for examples and further explanation including related video clips and also comments
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Capital Control definition explanation

What is Capital Control?
Any measure taken by a government, central bank or other regulatory body to limit the flow of foreign capital in and out of the domestic economy. This includes taxes, tariffs, outright legislation and volume restrictions, as well as market-based forces. Capital controls can affect many asset classes such as equities, bonds and foreign exchange trades.

Tight capital controls are most often found in developing economies, where the capital reserves are lower and more susceptible to volatility. Read more for examples and further explanation including related video clips and also comments
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