Introduction  A bond offering a higher yield is often the first one that catches an investor’s attention. After all, a higher return sounds attractive. But experienced investors know that a bigger number is only part of the story. Before making a decision, they usually stop and ask one question. Why is this bond paying more […]

Most people buy a bond for one reason. They want regular interest. But there is another part of the return that often goes unnoticed. Every time the bond pays a coupon, the investor has a choice. The money can be spent. It can stay in the bank. Or it can be invested again. If the […]

Introduction A convertible bond is already an interesting product because it has two sides. It works like a bond, but it also gives exposure to the company’s stock. Convertible Bond Arbitrage is a strategy built around this mix. It tries to benefit from the price difference between the convertible bond and the company’s shares. Key […]

Introduction When an investor opens a bond detail page, many numbers appear together. Coupon, yield, price, maturity and rating. Among them, Par Value of Bond is one number that often gets ignored. It should not be. Par value is the base value of the bond. It usually tells the investor how much the issuer will […]

Introduction In the bond market, risk is not always visible at first glance. A company may have a rating, a coupon and a maturity date, but investors still want to know how risky the borrower looks in the market. This is where CDS spread helps. It gives a market-based idea of how costly it is […]

A bond may look simple at first. There is a coupon. There is a maturity date. There is a repayment promise. But the actual rules are written in a document called a Bond Indenture. It explains how the bond will work and what happens if something goes wrong. Key Takeaways What Is A Bond Indenture? […]

When an investor buys or sells a security, the order may get placed instantly. But the transaction is not fully complete at that moment. The actual exchange of money and securities happens later. That final completion day is called the Settlement Date. Key Takeaways The Settlement Date is the day when a trade is completed. […]

Before investing in a bond, an investor needs the full picture. The coupon may look good. The maturity may also look suitable. But that is still only part of the story. The investor also needs to know who is borrowing the money, why the money is being raised, how the issuer plans to repay it, […]

A home loan does not always stay only with the lender. Sometimes, many such loans are grouped together and converted into an investment product. This is called a mortgage backed security. Investors who buy it receive money from the repayments made by home loan borrowers. Key Takeaways A mortgage backed security is created from a […]