Fixed Income Glossary


  accrued interest accrued interest the interest received from a security's last interest payment date up to the current date or date of valuation; an investor who sells a security with accrued interest will not receive that interest until the next interest payment date after the sale; the buyer receives all interest from the last payment date, including any interest that accrued while the bond was owned by the prior investor; the buyer then pays the seller all interest that has accrued from the last payment date up to but not including the settlement date for the trade; in a bond ladder’s summary calculations, the accrued interest field refers to the sum of all accrued interest from the securities in the ladder that will need to be paid if the ladder is purchased on that day
  adjusted options adjusted options option contract that has been adjusted or changed from its original terms due to a corporate action, special dividend, or other occurrence impacting the underlying security
  agency/GSE agency/GSE agency bonds are issued by official U.S. government bodies (e.g., Tennessee Valley Authority (TVA); government sponsored entity (GSE) bonds are offered by lenders created by an act of Congress to assist groups of borrowers (e.g., farmers, ranchers, homeowners, mortgage lenders, etc.); the principal and interest of GSE bonds are not guaranteed by the U.S. government; Agency and GSE bonds are generally available in minimum denominations of $10,000, with subsequent investments in increments of $5,000; Fidelity makes these securities available in minimum denominations of $1,000, and subsequent investment increments of $1,000
  auction auction a security distribution system in which the price is set, based on auction bids, at the lowest level that will raise the requisite funds
  auction date auction date the date on which Treasury auction and Agency/GSE auction securities will be offered via Dutch auction
  Auto Roll Auto Roll a feature that provides customers with the ability to purchase certain eligible Treasury auction securities and/or new issue FDIC-insured certificates of deposit (CDs) with the proceeds of the principal of these securities at maturity automatically used to purchase a similar instrument; auto roll will continue to purchase a new security at the maturity of an older security unless the customer cancels the feature for that security, there is a material change to the Treasury auction schedule, or Fidelity is unable to find a replacement new issue CD that meets the initial size, duration and coupon frequency criteria of the maturing security
  average coupon rate average coupon rate the weighted-average coupon rates of all the bonds in a bond ladder
  average price average price the weighted-average price of the bonds in a bond ladder
  average yield average yield the weighted-average yield to maturity for the bonds in a bond ladder; when searching Fidelity’s bond inventory, this amount represents the average yield for all securities offered by Fidelity that meet the search criteria entered for a particular ladder
  average yield to worst average yield to worst the lowest possible average yield of all bonds in a bond ladder if the worst possible bond repayment scenarios take place, reflecting the lower of the yield to maturity or the yield to call based on the most recent Third Party price


  basis point basis point one one-hundredth (1/100 or 0.01) of one percent; used to express the yield
  bid bid a proposal to purchase securities at a specified price; bids are infrequently available for municipal bonds and certificates of deposit (CDs) as compared to more liquid fixed income securities, such as U.S. Treasuries and corporate bonds
  bond type bond type the type of bond as delineated across the primary product sub-categories of corporates, municipals, Agencies/GSEs, Treasuries, or Certificates of Deposit; in the bond ladder tool, bond type indicates whether the ladder will invest in only municipal or taxable bonds; generally, tax-free municipal securities are considered inappropriate holdings for tax-advantaged accounts such as an IRAs and other retirement accounts; please consult your tax advisor for advice about your specific situation.
  Build America Bonds (BAB) Build America Bonds (BAB) a category of taxable municipal bonds which have no implied backing from the federal government and can be one of two types; the first type of Build America Bond provides a Federal subsidy through Federal tax credits to investors in the bonds; the second type of Build America Bond provides a Federal subsidy through a refundable tax credit paid to state or local governmental issuers by the Treasury Department and the Internal Revenue Service


  call feature call feature a feature of a bond or other security that determines the terms under which it can be redeemed by the issuer before the scheduled maturity
  call provision call provision a feature of a bond or other security that determines the terms under which it can be redeemed by the issuer before the scheduled maturity
  call schedule call schedule the list of dates on which a fixed-income security can be redeemed prior to maturity by the issuer; also includes the corresponding call prices
  callable callable a bond or other security that may be redeemed by the issuer before the scheduled maturity; terms of this feature can be found in the bond's call schedule
  conduit bonds conduit bonds revenue bonds issued by state agencies, which are generally third-party entities that act on behalf of the actual borrowers, typically private nonprofit (501(c)(3)) entities; the third-party conduit borrower—not the issuing agency—is responsible for interest payments and principal repayments
  conservator conservator an entity, typically the Federal Deposit Insurance Corporation, that may be appointed to take legal control over a financial institution and all of its assets
  contemporaneous cost contemporaneous cost For secondary market bonds and CDs, the displayed bid or offer price at which a bond or CD is offered at on
  convertible bond convertible bond bonds that contains a provision allowing the holder to exchange the bond for a specified number of shares of a different security (usually common stock) issued by the same company that issued the bond; terms of conversion are disclosed at the time the bond is issued
  corporate bond corporate bond a debt security issued by a private corporation; interest is taxable and is generally paid according to a coupon rate set at the time the bond is issued; generally have a face value of $1,000 and a specific maturity date
  corporate debt corporate debt a debt security issued by a private corporation; interest is taxable and is generally paid according to a coupon rate set at the time the bond is issued; generally have a face value of $1,000 and a specific maturity date
  CorporateNotes ProgramSM CorporateNotes ProgramSM a program that offers fixed rate senior and subordinated, unsecured obligations from a variety of independent issuers on a weekly basis, with a range of maturities and structures available; maturities range from 9 months to 30 years for both callable and non-callable securities; CorporateNotes may be purchased in principal amounts as low as $1,000 and in additional increments of $1,000; the risks involved are similar to other corporate bond investments, including but not limited to credit risk, and interest rate risk
  coupon coupon the interest rate a bond's issuer promises to pay to the bondholder until maturity, or other redemption event, generally expressed as an annual percentage of the bond's face value; for example, a bond with a 10% coupon will pay $100 per $1000 of the bond's face value per year, subject to credit risk; when searching Fidelity's secondary market fixed income offerings, customers can enter a minimum coupon, maximum coupon, or enter both to specify a range and refine their search; when viewing Fidelity's fixed-income search results pages, the term "Step-Up" instead of a numeric coupon rate means the coupon will step up, or increase over time at pre-determined rates and dates in the future; clicking Step-Up will reveal the step-up schedule for that security
  coupon frequency coupon frequency the frequency with which a fixed-income security pays interest (e.g., quarterly, semi-annually, yearly); see also payment schedule
  credit quality credit quality a criteria used to evaluate the creditworthiness, or risk of default, of an individual fixed-income security; generally expressed through ratings provided by one of the credit ratings agencies
  credit risk credit risk the risk that the issuer of a fixed-income security may not be able to make regularly scheduled interest payments or repay the principal at maturity
  creditor creditor an entity that extends credit to another entity by providing permission to borrow money; agreement generally includes the terms of the loan, such as interest rate, payment frequency, and date the principal the loan is due; in the context of bonds, an investor in bonds is described as a creditor of the entity that issued the bonds
  creditworthiness creditworthiness measurement of the risk of default of an individual fixed-income security or the issuer of a fixed-income security; generally measured by one of the major ratings agencies
  CUSIP CUSIP the nine-character alphanumeric identifier used to identify a U.S. or Canadian security


  debt refinancing debt refinancing the act of retiring one debt issue and replacing it with another, usually at a lower interest rate, in order to reduce the issuer's borrowing costs
  default default if a bond issuer fails to make either an interest payment or principal repayment on its bonds as they come due, or fails to meet some other provision of the bond indenture, that bond is said to be in default; credit ratings agencies such as Moody's and S&P rate bonds to indicate the issuer's credit quality, and thus provide insight into the likelihood of default
  delete delete after expressing an open indication of interest in a new issue fixed-income offering for which securities have not yet been allocated, this option allows customers to cancel that indication of interest and end participation in the offering; once an indication of interest has been deleted, that customer will not be eligible to receive an allocation of securities, even if the indication of interest had previously been confirmed; while customers can attempt to delete an indication of interest at any time before securities are allocated, deletions are performed on a best efforts basis; there is no guarantee that an indication of interest can be deleted, in whole or in part
  depth of book depth of book refers to the display of numerous bids and offers in a given security in addition to the best bid and offer price; allows market participants to assess the liquidity of a given security; enables customers to see beyond the best bid or offer price, which may be of a limited quantity; is useful for customers who wish to purchase larger quantities of a given security
  discount discount the amount below the stated 'face' or par value when a fixed-income security (e.g. a bond) is bought or sold; for example, if a bond's face value is $1,000 and it sells for $900, it was sold at a discount
  dummy CUSIP dummy CUSIP temporary nine-character alphanumeric identifier used to identify a U.S. or Canadian security; for bonds, this displays for New Issue Certificates of Deposit (CDs) and New Issue Municipals; converts to a CUSIP on settlement


  estimated annual income (EAI) estimated annual income (EAI) estimate of annual income from a specific security position over the next rolling 12 months; calculated for U.S. government, corporate, and municipal bonds, and CDs by multiplying the coupon rate by the face value of the security; calculated for common stocks (including ADRs and REITs) and mutual funds using an Indicated Annual Dividend (IAD); calculated for fixed rate bonds (including treasury, agency, GSE, corporate, and municipal bonds), CDs, common stocks, ADRs, REITs, and mutual funds when available; not calculated for preferred stocks, ETFs, ETNs, UITs, international stocks, closed-end funds, and certain types of bonds
  estimated yield (EY) estimated yield (EY) estimate of a specific security position's annual yield for the next 12 months; calculated by dividing the estimated annual income (EAI) for the security position by the market value of that position, which may be higher or lower than the original purchase price
  extraordinary redemption - fixed income extraordinary redemption - fixed income a provision which allows a bond issuer the right to call its bonds before maturity if certain specified events occur (as specified in the offering statement), such as natural disasters,cancelled projects, to almost anything else


  face value face value the stated value of an investment at maturity; the face value of a corporate bond, for example, is typically $1,000; for bond ladders, face value is the stated aggregate value of the underlying securities at maturity; for example, if there are five rungs in the ladder with 20 bonds in each rung and each bond has a $1,000 face value, the total face value of the ladder is $100,000; also known as par value or par amount


  government bond government bond debt obligations of the U.S. government that are issued with maturities of ten or more years; versus government bills issued at one year or less and government notes issued at one to ten years


  histogram histogram relative distribution of volume and open interest for options within each expiration


  increment increment the quantity in which additional bonds can be purchased beyond the initial investment quantity; for example 5, meaning $5000 face value
  indenture indenture a contract that explains the various terms, options and intricacies of a bond
  indicated annual dividend (IAD) indicated annual dividend (IAD) estimate of a security's dividend payments for the next 12 months; calculated using prior and/or declared dividends for that security; sourced from third-party vendors and derived using either a historical methodology (HM) or a projected methodology (PM), depending on available information; PM annualizes the most recent regular cash dividend; HM accumulates the regular cash dividends paid over the past twelve months; if there is less than one year of dividend history, the accumulated dividends are annualized; HM or PM figure, whichever is calculated, is then multiplied by the reported quantity of the security
  indication of interest indication of interest a specific type of order, for a new issue security, submitted by a customer to let Fidelity know that they want to become eligible to receive an allocation of a new issue; information submitted includes the brokerage account from which the funds to pay for the securities will be deducted, the security's CUSIP, and the maximum quantity of securities that the customer would be willing to purchase; by placing an indication of interest, customers are expressing their desire to participate in a new issue offering; unless the order is cancelled by the customer, they will participate in the allocation process, allocations may be made in whole, in part, or not at all; updates regarding the order are sent to the customer as an alert that is sent by email or viewable in the Service Message Center
  interest interest the amount paid by a borrower to a creditor, or bondholder, as compensation for the use of borrowed money
  interest income interest income the dollar amount of all interest earned on government and corporate debt obligations and short-term certificates of deposit, as well as interest earned from cash in a brokerage account; for bond ladders it represents the estimated annual income that will be received from the securities that make up the rung; the income is calculated by multiplying the coupon rate by the quantity of bonds (face value)
  issue price - fixed income issue price - fixed income the price paid for fixed‐income securities purchased directly from the issuer; for example, a Treasury Auction bond purchased directly from the U.S. government would cost $1,000 at face value
  issuer issuer a government, corporation, municipality, or agency that has issued a security (e.g., a bond) in order to raise capital or to repay other debt; the issuer goes to an underwriter to get their securities sold in the new issue market; for certificates of deposit (CDs), this is the bank that has issued the CD; in the case of fixed income securities, the issuer of the security is the primary determinant of the security's characteristics (e.g., coupon interest rate, maturity, call features, etc.)


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  last coupon last coupon Date issuer anticipates to pay the penultimate interest payment.


  mark-down mark-down For secondary market bonds and CD sells, the difference (dollar and %) between the Prevailing Market Price (PMP) and the trade price. Mark-down is calculated as: Mark-down / Total initial price x 100. The mark-down includes, but may not be limited to, Fidelity’s $1 per bond pricing. Details available on our fee schedule.
  market fluctuation market fluctuation the rise or fall in a security's price or portfolio's value within a short-term period; may be slight or dramatic depending on market and other conditions
  mark-up mark-up For secondary market bonds and CD purchases, the difference (dollar and %) between the Prevailing Market Price (PMP) and the trade price. Mark-up is calculated as: Mark-up / Total initial price x 100. The mark-up includes, but may not be limited to, Fidelity’s $1 per bond pricing. Details available on our fee schedule.
  material events - fixed income material events - fixed income the disclosure of certain enumerated events affecting a municipal security; these events include the following, if material: (1) principal and interest payment delinquencies; (2) non-payment related defaults; (3) unscheduled draws on debt service reserves; (4) unscheduled draws on credit enhancements; (5) substitution of credit or liquidity providers; (6) adverse tax events affecting the tax-exempt status of the security; (7) modifications to rights of securities holders; (8) bond calls; (9) defeasances; (10) release, substitution, or sale of property securing repayment; (11) rating changes; (12) failure to provide annual financial information as required; the MSRB, Electronic Municipal Market Access (a.k.a. EMMA) provides free access to municipal disclosures, market data and education
  maturity, maturity date(s) maturity, maturity date(s) the date on which the principal amount of a fixed-income security is scheduled to become due and payable, typically along with any final coupon payment; it is also a list of the maturity dates on which individual bonds issued as part of a new issue municipal bond offering will mature; for example, if the issuer is offering 25 bonds and the maturity dates for the individual bonds range over a 10-year period, one might see 8/4/2002, 2003-2005, 2007, 2008, 2009, 2010; this would indicate that the securities mature on 8/4 of the years listed
  maximum maximum the highest value that can be specified when refining a particular search for fixed-income secondary market offerings; for example, the maximum coupon or ask price
  minimum minimum the lowest value that can be specified when refining a particular search for fixed-income secondary market offerings; for example, the minimum coupon or ask price
  Moody's Moody's an independent organization that assigns credit ratings to debt instruments and securities to help investors assess credit risk
  municipal general obligation bond municipal general obligation bond a type of municipal bond backed by the full faith, credit, and taxing power of the issuer, specifically its ability to collect taxes; only entities that have the right to levy and collect taxes can issue general obligation bonds; certain governmental entities are subject to legal limits on the amount of taxes that they can impose, and their issues are called limited-tax general obligation bonds; unlimited-tax bonds are issued by government entities that are not subject to those limits


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  offer price offer price the price at which a security may be purchased; conversely, bid price is the price at which a security may be sold
  open order open order an order status indicating that an order has been placed and that no part of that order has been executed
  option strategy option strategy consists solely of either calls or puts, or a combination of both, to take advantage of a specific market forecast
  Original Issue Discount (OID) Original Issue Discount (OID) the difference between the stated redemption price at maturity (if greater than one year) and the issue price of a fixed income security attributable to the selected tax year; NOTE: Tax reporting of OID obligations is complex; if acquisition or bond premium is paid during the purchase, or if the obligation is a stripped bond or stripped coupon, the investor must compute the proper amount of OID; refer to IRS Publication 1212, List of Original Issue Discount Instruments, to calculate the correct OID


  par par the stated value of an investment at maturity; includes bonds, life insurance policies, bank notes, currency, some stocks, and other securities; typically $1,000 for a corporate bond
  par value par value the stated value of an investment at maturity; includes bonds, life insurance policies, bank notes, currency, some stocks, and other securities; typically $1,000 for a corporate bond
  payment schedule payment schedule the frequency with which a fixed-income security pays interest (e.g., monthly, quarterly, semi-annually, yearly)
  preferred stock preferred stock stocks that pay a fixed dividend; have dividend and asset preference over common stocks, but behind debt in the case of bankruptcy; generally does not come with voting rights; either perpetual (have no maturity) or maturities of 30 years or more; can be callable
  premium, fixed income premium, fixed income the amount above the stated face or par value when a fixed-income security (e.g., a bond) is bought or sold; for example, if a bond's face value is $1,000 and it sells for $1,200, it was sold at a premium
  pre-refunded bonds pre-refunded bonds a municipal bond that is secured by an escrow fund; the escrow fund comes from the issuer floating a second bond issue and using the proceeds from that second bond issue to purchase government obligations, typically U.S. Treasuries, proceeds from the second bond issue create an escrow fund to mature at the first call date of the first bond issue to pre-refund that issue; bond issuers will typically do this during times of lower interest rates to lower their interest costs
  prevailing market price (PMP) prevailing market price (PMP) For secondary market bonds and CDs viewable online, PMP is the contemporaneous cost, which is the displayed bid or offer price at which the bond is offered at on For secondary market bonds and CDs not viewable online, PMP is calculated based on the inter-dealer market price prevailing at the time of the customer transaction.
  pricing date pricing date for a new issue fixed-income security, the date on which the price was set
  principal repayment principal repayment the payment of the face value of a bond or CD by the issuer; this can be due to the securities reaching maturity date, or because the issuer redeemed the securities prior to maturity due to a call or other form or redemption
  provision provision a portion of a bond's covenant that determines certain characteristics about the bond, such as the conditions under which it can be called or redeemed by the issuer, or the rate and price at which it can be converted into common stock (if applicable)
  puttable bond puttable bond a type of bond that gives the holder with the right to require an issuer to repurchase the bond, allowing the holder to purchase a higher coupon bond with the proceeds received from exercising the put option; puts can generally be exercised on pre-determined dates; customers are encouraged to read the prospectus to understand the type of put feature and any associated limitations


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  redeem redeem the act of an issuer calling, or purchasing a fixed-income security from the holder, generally at face value, prior to the stated maturity date; the bond indenture can provide details on possible redemptions
  redemption redemption the act of an issuer calling, or purchasing a fixed-income security from the holder, generally at face value, prior to the stated maturity date; the bond indenture can provide details on possible redemptions


  secondary market secondary market a market where securities are bought and sold between investors, as opposed to investors purchasing securities directly from the issuers; secondary market activity generally takes place on a major exchange, such as the New York Stock Exchange, or on electronic communications networks (ECNs)
  sector sector refers to the area of the economy from which a corporate bond issuer primarily derives its revenues, such as financial or industrial. Within each Sector are Industry Groups; for example, chemical and petroleum would be Industry Groups under the industrial Sector; the Sector and Industry Groupings are relatively static, although the inventory available within a given Grouping changes subject to market activity; NOTE: There may be cases when certain bonds are not classified, in which case searching by all sectors will yield the most results
  sovereign debt sovereign debt fixed-income securities issued by a national government in that country's local currency; in addition to the credit risks presented by the issue and the issuing country, may also be subject to currency risk
  Standard & Poor's (S&P) Corporation Standard & Poor's (S&P) Corporation an independent company that provides investors with market intelligence in the form of credit ratings, indices, investment research and risk evaluations and solutions
  standard market session standard market session for equities: 9:30 a.m. to 4:00 p.m. ET when U.S. markets and exchanges (e.g., NASDAQ and NYSE) are generally open for trading; for bonds: 8:00 a.m. to 5:00 p.m. ET, when over-the-counter markets are open for trading (bond trading hours may vary based on marketplace participation)
  state state this can refer to either the two-character abbreviation for the state where a driver's license was issued, provided during Fidelity’s Electronic Funds Transfer online setup; or a way to specify the state where bonds are issued when refining a search of municipal bond offerings; for bond ladders, customers can search Fidelity's municipal bond offerings inventory by selecting the state where the bonds are issued to refine their search
  survivor's option survivor's option also known as a "death put," a feature of certain debt instruments allowing for the estate of a deceased investor to "put back" or redeem both principal and interest of that instrument without penalty; CDs or bonds that carry a survivor's option usually redeem for par value when the survivor's option is exercised; partial withdrawal of the owner’s interest is not permitted; the survivor’s option must be invoked by the estate prior to any account re-registrations or transfer; issuers may limit the permissible early withdrawal of CDs or bonds to the FDIC insurance limits (currently $250,000 for each insurable capacity), and/or may limit the amount being put back in a particular time period


  tax-exempt income tax-exempt income interest from municipal bonds as well as distributions from mutual funds that qualify as exempt interest dividends; this income is generally not subject to regular federal income taxes; note that Fidelity reports this information to the IRS, and may be required to report the information to tax authorities in California among other states; the total amount or a portion of tax-exempt income (reported as specified private activity bond interest) must be taken into account when computing the federal Alternative Minimum Tax (AMT) applicable to individuals and may be subject to state and local taxes; you are required to report tax-exempt income on Form 1040, and may be required to report it on your state tax return as well
  term term an indicator of how long a security position or lot was held; possible values are Long: held for more than 1 year; Non-Reportable: lot or position was closed as the result of a transaction other than a sale; no reportable gain/loss was reported, the holding period and resulting term are not reported; Short: held for 1 year or less; and Unknown: Fidelity does not know how long the position or lot was held; this state typically exists because the shares were transferred to Fidelity from another institution and the holding period prior to the transfer was not communicated; for fixed-income securities, this is the period of time from the security's issue date until the maturity date; for example, for a 10-year corporate bond the term is 10 years
  third-party providers third-party providers Fidelity's fixed income inventory is composed of offerings from Fidelity Capital Markets and other third-party providers.
Fidelity may source bonds directly from national and regional broker dealers or use national and regional broker dealers that are affiliated with Tradeweb (FKA as BondDesk), KCG BondPoint, and The MuniCenter offering platforms.
Note that Fidelity’s combined inventory will generally not represent the universe of outstanding securities of a given bond type.
  TIGRs TIGRs Treasury Income Growth Receipts; U.S. Government-backed bonds that have been stripped of their coupons and sold at a deep discount; discontinued in 1986 when replaced by treasury STRIPS
  trading flat trading flat a term applied to bonds that trade without accrued interest, typically due to financial distress; i.e., when a bond trades flat, the buyer is not responsible for paying the seller any interest that has accumulated since the last coupon payment
  Treasuries Treasuries debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and/or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero-coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions
  treasury auctions treasury auctions the initial sale of U.S. debt obligations and new issues, offered and purchased directly from the U.S. government at a face value set at auction; these securities are auctioned in a single-priced, Dutch auction; auctions are held with the following frequencies: Treasury bills with one-month (30 day), three-month (90 day), and six-month (180 day) maturities are auctioned weekly; treasury notes with two- and five-year maturities are auctioned monthly; Notes with three-year maturities are auctioned in February, May, August, and November; treasury bonds with 10-year maturities are auctioned in February, May, August, and November. Treasury Inflation Protected Securities (TIPS) are issued in 5-, 10-, and 20-year maturities and are auctioned in January, April, July, and October
  Treasury bonds Treasury bonds debt obligations of the U.S. Government with maturities of 10 years or longer; coupon interest for Treasury bonds is exempt from state and local taxes, but is federally taxable; interest income may also be subject to alternative minimum tax
  Treasury inflation protected securities (TIPS) Treasury inflation protected securities (TIPS) a type of Treasury note that adjusts for inflation by providing inflation compensation in addition to the coupon; the inflation component, affecting principal, is based on the Consumer Price Index (CPI), adjusting it upwards for inflation or downwards for deflation; the adjustment impacts semi-annual interest paid and the principal at maturity; since TIPS' principal adjusts semi-annually, the coupon varies as well; at maturity, a TIPS pays the greater of the adjusted or original principal; this provision protects the investor from the loss of any principal in the event of a sustained period of deflation; investors in TIPS sacrifice some yield as a trade-off for the inflation protection; the inflation adjustment is federally taxable on an annual basis, although not paid out until maturity
  Treasury inflation-protected securities (TRACE) Treasury inflation-protected securities (TRACE) the Trade Reporting and Compliance Engine (TRACE) is the FINRA-developed vehicle that facilitates the mandatory reporting of over the counter secondary market transactions in eligible fixed income securities; all broker/dealers who are FINRA member firms have an obligation to report transactions in corporate bonds to TRACE under an SEC approved set of rules
  treasury security treasury security debt obligations of the U.S. government that are issued at various intervals and with various maturities


  use of proceeds - fixed income use of proceeds - fixed income the area or activities to which the funds raised from a municipal bond issue will be directed and, in turn, the source of future bond interest payments and principal repayment; for general obligation bonds, funds raised may be for general purposes, both operating and infrastructure, and payments are secured by the general taxing power of the issuer — usually a state, town, or city; revenue bonds are categorized under terms such as "Utilities" or "Transportation"


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  yield yield the percentage of return an investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage rate; yield stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close
  yield curves yield curves the relationship between interest rates and time, determined by plotting the yields of all or as many bonds of similar credit quality (eg: Treasuries or AA-rated Corporates), against their maturities; yield curves typically slope upward since longer maturities normally have higher yields, although it can be flat or even inverted; the Fixed Income Search Results Scattergraph shows several smoothed yield curves for different fixed-income product types and credit qualities; these are based on bonds that Fidelity recognizes and are not equal to the entire universe of bonds, which is significantly larger than the number of bonds offered by Fidelity on any given day
  yield to maturity yield to maturity the rate of return an investor receives if an investment is held to the maturity date
  yield to worst yield to worst the lowest potential yield that can be received on a bond without the issuer actually defaulting; calculated by making worst-case scenario assumptions on the issue by calculating the returns that would be received if any in-whole mandatory redemptive provisions are exercised by the issuer; partial redemptive provisions (such as sinking funds) are not included in yield to worst calculations; the yield to worst metric is used to evaluate the worst-case scenario for yield to help investors manage risks and ensure that specific income requirements will still be met even in the worst scenarios


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