Bond Yields Explained

Описание: Bond Yields Explained provides viewers with insights into the calculation, interpretation and application of various types of yields commonly encountered by fixed income market participants.


The presentation begins by introducing some concepts and terminology related to yield. That is a more complicated issue than it may initially seem as the word yield is used to imply a number of related, but distinctly different, concepts. The first part of the session will focus on sorting through those different meanings as well as some of the implications for assessing the relative attractiveness of different fixed income securities.


After that introduction the presentation shifts to a more technical perspective. The discussion addresses a variety of yields commonly used in assessing the value and relative attractiveness of different securities: nominal yield, current yield, yield to maturity and yield to call. The greatest emphasis will on yield to maturity. Although it is the most widely used, yield to maturity is one of the most misunderstood concepts in the fixed income business.


For each of the yield measures reviewed the discussion starts with a description of what that specific yield measure tries to quantify, followed by an overview of the method used for calculating that yield, and wraps up by showing how market participants interpret and apply the insights provided by that statistic.