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- Y
-
Fifth letter of a NASDAQ stock symbol specifying that it is an A.D.R.
- Yankee bonds
- Foreign bonds denominated in US$ issued in the United States by foreign banks and corporations. These bonds are usually registered with the S.E.C.
For example, bonds issued by originators with roots in Japan are called
Samurai bonds.
- Yankee CD
- A CD issued in the domestic market, typically New York, by a branch of a foreign bank.
- Yankee market
- The foreign market
in the United States.
- Yard
- Slang for one billion currency units. Used particularly in currency trading, e.g. for Japanese yen since on billion yen only equals approximately US$10 million. It is clearer to say, "I'm a buyer of a yard of yen," than to say, "I'm a buyer of a billion yen," which could be misheard as, "I'm a buyer of a million yen."
- Yield
- The percentage rate of return paid on a stock in the form of dividends, or the effective rate of interest paid on a bond or note.
- Yield curb
- Mainly applies to convertible securities. Difference in current yield between the convertible and the underlying common.
- Yield curve
- The graphical depiction of the relationship between the yield on bonds of the same credit quality but different maturities. Related: Term structure of interest rates. Harvey (1991)
finds that the inversions of the yield curve (short-term rates greater than
long term rates) have preceded the last five U.S. recessions. The yield curve
can accurately forecast the turning points of the business cycle.
- Yield curve
option-pricing models
- Models that can incorporate different volatility assumptions along the yield curve, such as the Black-Derman-Toy model. Also called arbitrage-free option-pricing models.
- Yield curve strategies
- Positioning a portfolio to capitalize on expected changes in the shape of the Treasury yield curve.
- Yield differential/pickup
- Mainly applies to convertible securities. Graph showing the term structure of interest rates by plotting the yield of all bonds of the same quality with maturities ranging from the shortest to the longest available.
- Yield ratio
- The quotient of two bond yields.
- Yield spread strategies
- Strategies that involve positioning a
portfolio to capitalize on expected changes in yield spreads between sectors of the bond market.
- Yield to call
- The percentage rate of a bond
or note, if you were to buy and hold the security until the call date. This yield is valid only if the security is called prior to maturity. Generally bonds are callable over several years and normally are called at a slight premium. The calculation of yield to call is based on the coupon rate, length of time to the call and the market price.
- Yield to maturity
- The percentage rate of return
paid on a bond, note or other fixed income security if you buy and hold it to its maturity date. The calculation for YTM is based on the coupon rate, length of time to
maturity and market price. It assumes that coupon interest paid over the life of the bond will be reinvested at the same rate.
- Yield to warrant call
- Mainly applies to convertible securities. Effective yield of usable or synthetic convertible bonds determined against the first date at which the warrants can be called.
- Yield to warrant expiration
- Mainly applies to convertible securities. Effective yield of usable converbile bonds determined by the expiration date of the applicable warrants.
- Yield to worst
- The bond yield computed by using the lower of either the yield to maturity or the yield to call on every possible call date.
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