Tag: bond

Net Borrower definition explanation

What is Net Borrower?
An entity that borrows more than it saves or lends out. A net borrower could be a company, country, government, group or individual. Borrowing can take the form of debt by acquiring goods and/or services under the stipulation of future payments, borrowing funds, or by issuing debt, such as bonds. Net borrowing occurs when the monetary summation of these borrowing activities exceeds the monetary amount of funds and assets lent/saved. Also known as “net debtor”. Read more for examples and further explanation including related video clips and also comments
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Chain Store Sales definition explanation

What is Chain Store Sales?
An indicator that provides information on the monthly sales volumes from chain stores. Chain store sales, released on the first Thursday of the month, correspond to about 10% of retail sales, and are thought to be a good indicator of trends in consumer spending and retail sales.

Chain store sales are reported as a percentage change from the same month one year earlier. Read more for examples and further explanation including related video clips and also comments
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Cross Trade definition explanation

What is Cross Trade?
A practice where buy and sell orders for the same stock are offset without recording the trade on the exchange, which is outlawed on most major stock exchanges. This also occurs when a broker executes both a buy and a sell for the same security from one client account to another where both accounts are managed by the same portfolio manager. Read more for examples and further explanation including related video clips and also comments
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Yield Burning definition explanation

What is Yield Burning?
The illegal practice of underwriters marking up the prices on bonds for the purpose of reducing the yield on the bond. This practice, referred to as “”burning the yield,”” is done after the bond is placed in escrow for an investor who is awaiting repayment. Read more for examples and further explanation including related video clips and also comments
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Treasury STRIPS definition explanation

What is Treasury STRIPS?
An acronym for ‘separate trading of registered interest and principal securities’. Treasury STRIPS are fixed-income securities sold at a significant discount to face value and offer no interest payments because they mature at par. Read more for examples and further explanation including related video clips and also comments
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Structured Note definition explanation

What is Structured Note?
A debt obligation that also contains an embedded derivative component with characteristics that adjust the security’s risk/return profile. The return performance of a structured note will track that of the underlying debt obligation and the derivative embedded within it. Read more for examples and further explanation including related video clips and also comments
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