A fixed income security issued in the US market, payable in dollars, by a non-US entity.

One thousand million (billion).

Yield or return represents the measure of a security’s value, which normally refers to its yield-to-maturity. It is generally quoted in percentage terms in order to make comparison between different investment alternatives possible.

A graph depicting the term structure of interest rates on fixed income securities, usually money market instruments and bonds, with similar credit quality but maturities ranging from short-term (overnight) to long-term (30 years).

The potential for loss due to shifts in the position or the shape of the yield curve.

The rate of return of the cash flow stream on a bond assuming the bond is called on a specified call date and that the amount repaid is the pre-specified call price for that call date. This measure of return is only applicable when the bond has an embedded option which gives the issuer the right, but not the obligation, to repay the bond prior to its stated maturity (redemption) date. This type of bond is usually referred to as a callable bond.

The rate of return of the cash flow stream of a bond in the form of the bond’s price and the stream of interest and principal amounts. This is also the market interest rate that is used to price the bond and the rate that is affected by supply of and demand for the specific bond.

The minimum of the yield-to-maturity and the yield(s) to call for all possible call dates on a callable bond. Bond investors calculate this when assessing how adversely a bond’s call feature might affect the value of their bonds.

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