| No |
REPORT |
SHORT DEFINITION |
| 1 |
30 Year Bond |
A bond is basically debt with interest. The difference between a bond and a direct loan is that a bond is easily traded in standard unit sizes and typically the bond has a standard contract form. |
| 2 |
10 Year T Notes |
T-Notes mature in two to ten years and offer a coupon or interest payment every six months. The 10 year T-Note is the Treasury most often quoted in discussions about the bond market. |
| 3 |
High Yield Corporate Bonds |
High yield (non-investment grade) bonds are from issuers that are considered to be at greater risk of not paying interest and/or returning principal at maturity. As a result, the issuer will offer a higher yield than a similar bond of a higher credit rating and, typically, a higher coupon rate to entice investors to take on the added risk. |
| 4 |
Municipal Bonds |
Municipal bonds (also known as munis ) are attractive to many investors because the interest income is exempt from federal income tax, and in many cases, state and local taxes as well. In addition, munis often represent investments in state and local government projects that have an impact on our daily lives, including schools, highways, hospitals, housing, sewer systems and other important public projects. |
| 5 |
Bond Spread |
For example, if a 30-year bond pays 4.90% while a 10-year bond pays 3.95%, the spread is 0.95%. |
| 6 |
Treasuries Maturity |
Maturity refers to the length of the loan to the government. Treasury bills have maturities from four weeks to 52 weeks. Since they mature so quickly, bills are simply sold at a discount to their face value at maturity.
|
| 7 |
Interest paid |
The interest is difference between the purchase price of the security and what the Treasury pays at maturity. For example, if you bought a 3-month bill for $9,800 and received $10,000 at maturity, the interest payment would be $200. |
| 8 |
Bond Prices and Commodities |
Rising Commodity Prices - higher inflation- generally means economic strength, which result in higher interest rates and lower bond prices.
Falling Commodity prices - lower inflation- period of slower economic growth,falling interest rates and higher bond prices: Recession
|
 |
|
|
