Fixed Income Glossary
A
| 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 |
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| 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 |
| all or none all or none | in the secondary fixed income market, all or none orders must be filled in their entirety, or cancelled |
| ask yield to maturity ask yield to maturity | the rate of return an investor receives if an investment is held to the maturity date, calculated using the displayed price at which a third-party seller is offering to sell the securities |
| 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 |
B
| basis point basis point | one one-hundredth (1/100 or 0.01) of one percent; used to express the yield | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| benchmark formula benchmark formula |
a formula to determine a performance standard against which a bond or other security can be measured.
in the case of variable or step-rate securities, the addition or subtraction of a certain coupon rate differential over a benchmark |
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| benchmark reference benchmark reference | a group of securities or an index whose overall performance is generally agreed to be used as a standard against which relative investment performance is measured, or, in the case of variable or stepped rate securities, against which an interest rate differential or "spread" will be added or subtracted | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| bid request bid request | the ability for customers to request that dealers competitively price a security that they are attempting to sell. This occurs when there are no bid quotes displayed on Fidelity.com or a customer wishes to sell a smaller quantity than the current minimum on Fidelity.com. Customers may choose to sell at the bid price before the expiration time or let the bid expire. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Blue Sky Laws Blue Sky Laws | The registration of new issue securities with the state agency that reviews selling documents for accuracy and completeness. When seen as an attribute ("SKY") in a CD Results table or Details page, the phrase is used to point out those states that have Blue Sky Laws that prohibit the marketing and sale of that security to customers residing in that state. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Blue Sky State and Territory Abbreviations Blue Sky State and Territory Abbreviations |
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| 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| buy/sell buy/sell | for the term 'buy/sell' in the Basic Analytics section of the Price & Performance tab on the bond details page, please see 'recent trades' |
C
| 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 |
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| call protection call protection | Provision of a bond that makes it non-callable or not subject to a scheduled call, even though other early redemption provisions may exist as specified in the prospectus or official statement. |
| 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 |
| called bonds called bonds |
securities that have either:
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| cash management bills (CMBs) cash management bills (CMBs) | a type of US Treasury bill that is periodically issued through the Treasury auction process, with varying maturity terms, to help with managing short-term financing needs as needed by the US Treasury department. |
| conditional call conditional call | identifies if there is a conditional call provision, which permits the issuer to redeem the security conditioned upon the occurrence of certain events as specified in the security's prospectus |
| 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 Fidelity.com. |
| continuously callable continuously callable | a redemption of bonds that may occur at any time after the initial call date upon any required notice |
| convertible bond convertible bond |
issues of bonds with an option allowing the bondholder to exchange the bond for a specified number of shares or common stock in the firm. This is disclosed at the time the bond is issued
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 |
| convexity to worst convexity to worst | Convexity to Worst is the convexity of a bond computed using the bond's nearest call date or maturity, whichever comes first. This measure ignores future cash flow fluctuations due to embedded optionality |
| 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 |
| coupon rate coupon rate | a bond's annual interest rate, expressed as a percentage of the bond's face value |
| coupon type coupon type | identifies how a bond's coupon is structured during the life of that security. Examples are Fixed, Variable, Step, etc |
| 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 |
| current factor current factor | a decimal value reflecting the proportion of the outstanding principal balance of a bond, which changes over time, in relation to its original principal value. This typically applies, but is not limited to, mortgage securities. For mortgage securities, “The Bond Buyer” publishes the “Monthly Factor Report,” which contains a list of factors for Ginnie Mae, Fannie Mae and Freddie Mac securities. Fannie Mae, Freddie Mac and trustees of private label REMICs also publish REMIC tranche factors |
| current factor effective date current factor effective date | the date that the new proportion of the outstanding principal balance of a mortgage security becomes valid |
| current rate effective date current rate effective date | for variable or step-rate securities, specifies the date on which the next coupon rate change will become effective for interest calculations |
| current yield current yield | the ratio of the annual dollar amount of interest paid on a security to the purchase price or market price of the security, stated as a percentage. For example, a $1,000 bond purchased at par with a 3 percent coupon pays $30 per year, or a current yield of 3 percent. The same bond, if purchased at a discount price of $800, would have a current yield of 3.75 percent. A $1,000 bond purchased at a premium price of $1,200 would have a current yield of 2.50 percent |
| CUSIP CUSIP | the nine-character alphanumeric identifier used to identify a U.S. or Canadian security |
D
| date (convertible information) date (convertible information) | the date until which the convertible end date feature is available |
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| date/time date/time | for the term 'date/time' in the Basic Analytics section of the Price & Performance tab on the bond details page, please see 'recent trades' |
| dated date dated date | for some new issue fixed-income securities (e.g., bonds), this is the date on which coupon interest will begin to accrue |
| day count basis day count basis | indicates how many days in a month and days in a year are counted when performing interest calculations |
| day order day order | a time-in-force restriction that can be placed on the execution of an order. For bonds, this restriction requires that the order will be canceled at the end of the trading day if it is not filled in its entirety. All secondary market bond orders are considered All or None |
| De Minimis tax rule De Minimis tax rule | when municipal bonds are purchased in the secondary market at a discount, there will be tax implications if it is below the revised issue price. The De Minimis tax rule is price threshold whether the tax will be as a capital gain or ordinary income. If the market discount (revised issue price less the purchase price) is less than 0.25 multiplied by the number of full years to maturity after acquisition, the market discount is treated as a capital gain. Otherwise it will be taxed at your ordinary income tax rate. See our investments products & De Minimis Dilemma for more details |
| 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 |
| delivery delivery |
the action by which a security used to settle a trade is delivered or received to/from the other side of the trade. Possible values are:
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| 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 |
| domicile country domicile country | indicates the country where the company for the security is incorporated |
| 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 |
| duration duration | a quantitative measure that indicates the degree to which a bond's price will fluctuate in response to changes in comparable interest rates |
| duration to worst duration to worst | the duration of a bond computed using the bond's nearest call date or maturity, whichever comes first. This measure ignores future cash flow fluctuations due to embedded optionality |
E
| escrow end date escrow end date | the final effective date of a fund established to hold funds pledged and to be used solely for a designated purpose, typically to pay debt service on an outstanding issue in an advance refunding |
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| 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 |
| exchange exchange | the trading exchange (e.g., New York Stock Exchange) where a security is primarily traded |
| expected yield expected yield | For new issue fixed-income securities (e.g., bonds), this is the estimate of what the annual rate of return will be for the security. The actual yield for the security may be different. |
| extraordinary redemption extraordinary redemption | a mandatory or optional provision stated in a bond contract which either requires (in the case of a mandatory redemption) or allows (in the case of an optional redemption) a bond issuer the right to call its bonds before maturity under very specific circumstances. Extraordinary Redemption (ER) provisions are most commonly seen in housing bonds or student loan-backed bonds. Some examples include (but are not limited to) a "catastrophe call", such as the issuer loses access to the financed project due to a natural disaster or a "tax call", such as when a determination is made that interest on the bonds is taxable. Review the Official Statement for details on when an Extraordinary Redemption provision can be triggered |
F
| 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 |
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| FDIC certificate FDIC certificate | a unique number assigned by the Federal Deposit Insurance Corporation (FDIC) to identify institutions and the issuance of insurance certificates |
| FDIC insured FDIC insured | a field identifying whether or not the issue is insured by the Federal Deposit Insurance Corporation (FDIC). If the field displays either the FDIC Certificate number or YES, then the issue is insured by the FDIC and subject to FDIC coverage limits. If the field displays NO, then the issue is not insured by the FDIC. |
| Federal Deposit Insurance Corporation (FDIC) Federal Deposit Insurance Corporation (FDIC) |
An independent agency of the federal government, created in 1933, charged with preserving and promoting public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions up to applicable limits; by identifying, monitoring, and addressing risks to the deposit insurance funds; and by limiting the effect on the economy and the financial system when a bank or thrift institution fails. Further information on the FDIC and FDIC coverage may be found at http://www.fdic.gov. |
| federally tax exempt/taxable federally tax exempt/taxable |
a field that displays on the Search Secondary Market Offerings screen when you are searching for municipal bonds. You can select one of the following options from the drop-down list to refine your criteria:
On the search results screens the table titled "Your Key Search Criteria" will show that the bonds have taken this criteria into account. "Federally Taxable" displays if the bond's income is subject to Federal income taxes. "Federally Tax Exempt" displays if not. Even though some bond's income are federal income tax exempt, they may be subject to the alternative minimum tax. |
| fill or kill order fill or kill order | a time-in-force restriction that can be placed on the execution of an order. For bonds, this restriction requires that the order is executed in its entirety within 20 minutes or canceled. Fill or Kill orders are good only for the current day. All secondary market bond orders are considered All or None |
| FINRA FINRA | Financial Industry Regulatory Authority (FINRA) - the largest independent regulator for all securities firms doing business in the United States. FINRA's mission is to protect America's investors by making sure the securities industry operates fairly and honestly |
| first coupon date first coupon date | the date when the first coupon interest payment from a new issue fixed-income security (e.g., a newly issued bond) will be made |
| first settlement date first settlement date | the first settlement date for a security as a new issue. Settlement date is the date by which a buyer must pay for the securities delivered by the seller. |
| fixed rate capital securities fixed rate capital securities |
hybrid securities that combine the features of corporate bonds and preferred stock.
Generally have a stated maturity, although some are perpetual, offer attractive yields, and usually pay monthly or quarterly interest or dividends that are fully taxable. Tend to have higher yields than corporate bonds because they are subordinate in right of payment to all senior debt of the issuer. Issued as shares, with one share being issued at an amount generally lower than the typical $1000 face value for corporate bonds, such as $10 or $25.Generally, the minimum quantity for fixed rate capital securities is 100 shares, with additional investments available in 1-share increments. |
| foreign foreign |
a security that is incorporated in a foreign country
it can also indicate the percentage or dollar amount of your portfolio or one or more selected accounts that is invested in securities outside the U.S. Portfolio and account analysis shows the foreign exposure for your current holdings. This only applies to holdings that are classified as equities. |
G
| global indicator global indicator | a security that is held by a global custodian outside of the US |
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| 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 |
H
| histogram histogram | relative distribution of volume and open interest for options within each expiration |
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| historical inflation factor historical inflation factor | this is yesterday's inflation factor |
I
| increment increment | the quantity in which additional bonds can be purchased beyond the initial investment quantity; for example 5, meaning $5000 face value |
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| indenture indenture | a contract that explains the various terms, options and intricacies of a bond |
| index index |
An index is used to measure the changes in particular types of securities' values (e.g., stocks).
Major stock market indexes include (where the text in parenthesis is the trading symbol for the index): S&P 500 (.SPX) – Standard and Poor's 500 DJIA (.DJI) – Dow Jones Industrial Average NASDAQ (.IXIC) – NASDAQ Composite Index Russell 2000 (.RUT) – Russell 2000 Index Technology (.XCI) – AMEX Computer Technology Index Internet (.IIX) – AMEX Internet Index Broker/Dealers (.XBD) – AMEX Securities Broker/Dealer Oil & Gas (.XIO) – AMEX Oil Index Gold & Silver (.XAU) – Phlx Gold Silver Index Utilities (.DJU) – Dow Jones Utilities Average Transportation (.DJT) – Dow Jones Transportation Average Airlines (.XAL) – AMEX Airlines Index In a chart, you can select an index and compare the change in its value against the changes in value for a particular security. In fixed income investing, an index is referenced in the context of a Structured Product’s. The Structured Product tracks the rise and fall of a particular index and offers a return that is some percentage of the index's appreciation as outlined in the Structured Product's prospectus. |
| index start level index start level | the value or level of the index that forms the basis of a Structured Product's return on the issue date of the Structured Product. The percent gain of the index equals the index level at the Structured Product's maturity minus the index start level divided by the index start level. Assuming the index appreciates over the life of the Structured Product, the Structured Product will deliver a return equal to the percentage appreciation of the index multiplied by the Participation Rate |
| 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 |
| inflation factor inflation factor | for Treasury Inflation Protection Securities (TIPS) and Certificates of Deposit: Inflation Protected (CDIPs), it is calculated by dividing the latest Reference CPI by the Reference CPI on the Dated Date of the bond. The factor is the number the face value of the bond is multiplied by to calculate the adjusted principal |
| interest interest | the amount paid by a borrower to a creditor, or bondholder, as compensation for the use of borrowed money |
| interest accrual date interest accrual date |
for new issue fixed-income offerings (e.g., bonds), this is the date on which coupon interest will begin to accrue
for secondary market fixed-income offerings (e.g., bonds), this is generally the date the last coupon interest payment was paid |
| 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) |
| international international | a security that can be traded in a non-US marketplace and settled in a foreign currency, or an asset class that invests in securities outside of the U.S. See also, Asset Class, Fixed Income, Small Cap, Mid Cap, and Large Cap |
| ISIN ISIN | the International Securities Identification Number. It is a 12-character alpha-numerical code that uniquely identifies a specific security. The first two characters identify the country; the third through eleventh character is the National Securities Identification Number; and the 12 character is a check digit |
| issue date issue date |
Issue date this is the first date on which a fixed-income security (e.g., bond) could be bought
For a new issue offering, this is generally the expected date on which the security will be allocated to those participating in the offering. For reissued or "reopened" Treasury auction securities, the displayed date is the original issue date. |
| 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.) |
| issuer events issuer events |
Issuer Events reflect information that pertains to Corporate bonds and Agencies/GSEs (For Municipal Bonds see Material Events). They are designed to bring the investor's attention to key changes of the status of a particular issue or underlying issuer. Examples of Issuer Events include: Issuer upgrades and downgrades from major credit ratings agencies. Bond placed on or removed from credit watch by major ratings agencies. Bond has matured or been called. Fidelity makes these events available to its customers for informational purposes only. The information has been sourced from third parties and Fidelity has made no independent evaluation of the information or its accuracy, completeness, or timeliness. On the Secondary Corporate or Agency Bond Search Results Table, "IE" displays in the Attributes column if there are Issuer Events for an issue and would not display if there were none. Available Issuer Events can be viewed. Select "IE" or the issuer name to access Issuer Events. Issuer Events are also available as part of Fidelity's Event Alerts services. Holders of corporate and agency bonds can elect to receive an event alert to be sent to them electronically whenever an Issuer Event is generated on one of their holdings. |
J
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K
| (No entries) |
L
| last coupon last coupon | Date issuer anticipates to pay the penultimate interest payment. |
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| listed listed | indicator specifying whether the bond is listed and tradeable on the NYSE |
M
| make whole call make whole call | a corporate issue with an implicit call at an increasing premium as interest rates decline. Issuers may call these bonds at par plus a premium. This premium is derived from the yield of a comparable Treasury security plus additional basis points. The "street" treats these issues as non-call bonds due to the fact that it would be prohibitively expensive for a company to exercise this call option |
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| marginable security marginable security | a security that can be bought by borrowing on margin. The Federal Reserve determines which securities are marginable. Marginable securities you hold in your account are held in margin which increases your margin buying power. On the fixed-income security (e.g., bond) details screen, Yes displays if the security is marginable. No displays if it is not. |
| 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 |
Material Events reflect information that pertains to municipal bonds (For Corporate and Agency/GSE bonds see Issuer Events). They are designed to bring the investor's attention to key changes of the status of a particular issue or underlying issuer. These events include, but are not limited to, the following: (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.
Fidelity makes these events available to its customers for informational purposes only. The information has been sourced from third parties and Fidelity has made no independent evaluation of the information or its accuracy, completeness, or timeliness. On the Secondary Municipal Bond Search Results Table, "ME" displays in the Attributes column if there are Material Events for an issue and would not display if there were none. Available Material Events can be viewed. Select "ME" to access Material Events. Material Events are also available as part of Fidelity's Event Alerts services. Holders of municipal bonds can elect to receive an event alert to be sent to them electronically whenever a Material Event is generated on one of their holdings. |
| 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 |
| maximum rate maximum rate | the maximum coupon rate that a stepped or variable rate security can adjust to. For bond ladders, it indicates the maximum coupon you would like to receive on any security in the ladder |
| 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 |
| minimum rate minimum rate | the minimum coupon rate that a stepped or variable rate security can adjust to. For bond ladders, you can indicate the minimum coupon you would like to receive on any security in the ladder |
| Moody's Moody's | an independent organization that assigns credit ratings to debt instruments and securities to help investors assess credit risk |
| Moody's rating Moody's rating |
a bond rating system used by Moody's to specify its assessment of the quality of bonds (e.g., Aaa for best quality bonds, Baa for a lower quality than Aaa, etc.).
Moody's® is a registered trademark of Moody's Investors Service, Inc. Moody's ratings ("Ratings") are proprietary to Moody's or its affiliates and are protected by copyright and other intellectual property laws. Ratings are licensed to Licensee by Moody's. RATINGS MAY NOT BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. |
| 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 |
N
| new issue order new issue order | a specific type of order, for a new issue municipal security or new issue structured product 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 a new issue municipal or new issue structured product order, customers are expressing their desire to participate in a new issue offering. For new issue municipal orders, 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 |
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| next coupon date next coupon date | the date (MM/YY) of the bond's next coupon payment |
| next reset date next reset date | the next date upon which a new rate will be established for stepped and variable rate securities |
| next reset rate next reset rate | the next rate that will be established for stepped and variable securities |
O
| 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 |
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| 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 adjusted convexity option adjusted convexity |
the change in price of the bond not explained by option-adjusted duration. It is a measure of the curvature of the price-yield relationship of a bond after adjusting for any embedded options. The calculations are based on the Black-Karasinski model (an option valuation model in which the interest rate term structure is lognormal), for which the key assumptions are:
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| option adjusted duration option adjusted duration | bond prices typically move in the opposite direction to changes in interest rates. If interest rates rise, bond prices usually fall (and vice versa). Duration is a measure that helps approximate the degree of price sensitivity of a bond to changes in interest rates. Although stated in years, duration is often explained as an estimate of the percentage price change of a bond in response to a one percent change in interest rates. Bonds with higher duration have greater sensitivity to changes in interest rates and will generally experience a more significant drop in value as interest rates rise. For bonds with embedded options (for example callable or puttable bonds), the duration measure must be adjusted to account for the fact that the bond's embedded options may change the expected cash flows of the bond. For example, if a bond is called, interest payments cease and principal is returned earlier than the bond's maturity. The option-adjusted measure of duration is referred to as Option Adjusted Duration (OAD). |
| option adjusted spread option adjusted spread | A bond's yield is typically comprised of two components: 1) the yield on a similar benchmark security (typically Treasury securities) and 2) a premium above the yield on a similar benchmark security which seeks to compensate an investor for the credit risk associated with a particular bond. This premium is referred to as yield spread or simply "spread." For bonds with embedded options (for example callable or puttable bonds), the spread measure must be adjusted to account for the fact that the bond's embedded options may change the expected cash flows of the bond. For example, if a bond is called, interest payments cease and principal is returned earlier than the bond's maturity. The option-adjusted measure is referred to as Option Adjusted Spread (OAS). |
| 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 amount original issue amount | the amount or quantity offered to the public at the time of original issuance |
| Original Issue Discount (OID) Original Issue Discount (OID) | the indicator on the bond research page indicates whether a security may bear taxable OID for federal income tax purposes; the indicator is established at issuance, based on a review of information contained in the prospectus, and is set irrespective of whether the security bears taxable OID in any given tax year. A value of “S” = Short, a value of “L”=Long and a value of “N/A” = no information is available; both “S” and “L” mean the bond is subject to OID, with the difference being what the maturity term of the bond is as well. Generally OID is 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 |
| outlier bid outlier bid | occurs when the bid sourced on a customers’ behalf is not consistent with most recent trade activity or other available pricing information about the security a customer is attempting to sell. It can also be deemed by a third-party dealer to be outside their predetermined parameters. |
P
| 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 |
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| 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 |
| participation rate participation rate | the extent to which an investor will participate in the potential appreciation or depreciation of an underlying index or basket of securities. Generally a feature of structured products. If the participation rate of the structured product is less than 100%, the investor will realize a return that is less than the return of the linked index or customized basket. For example, if the participation rate is 80%, the investor will receive only 80% of any positive return on the index or basket, assuming no other limits on return potential. The participation rate will vary by product, and factors such as index type, maturity, and caps affect the rate. |
| pay frequency pay frequency | 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 |
| pre-refunded price pre-refunded price | the value, in par terms, at which the security shall be redeemed |
| 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 Fidelity.com. 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. |
| previous factor previous factor | the previous month’s decimal value reflecting the proportion of the outstanding principal balance of a mortgage security, which changes over time, in relation to its original principal value |
| previous factor effective date previous factor effective date | the date that the previous month’s proportion of the outstanding principal balance of a mortgage security became valid |
| price price |
expressed as a percentage of the par value for bonds. For example, a price displaying 101.500 means 101.500% of the par value of a bond which is generally $1000. So the price of the bond in this example would be $1,015.00.
for the term 'price' in the Basic Analytics section of the Price & Performance tab on the bond details page, please see 'recent trades'. |
| price (ask) price (ask) | a proposal by a trading desk or third-party to sell securities at a specified price; offers 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 |
| price (bid) price (bid) | a proposal by a trading desk or third-party 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 |
| pricing date pricing date | for a new issue fixed-income security, the date on which the price was set |
| primary country primary country | the country in which the trading market resides, for the primary SEDOL identifier for the bond |
| 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 |
Q
| quantity quantity |
for bond ladders, this represents the number of bonds or face value of bonds/CDs for that particular issue or rung. Generally, 1 bond equals $1,000 face value.
for the term 'quantity' in the Basic Analytics section of the Price & Performance tab on the bond details page, please see 'recent trades'. |
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R
| recent trades recent trades |
for corporate, government sponsored enterprises and municipal bonds, you can view recent trade history of a particular issue. On the Results Tables, Depth of Book pop-ups and Bond Details - Analytics page, there is a link to recent trading activity. Click View Recent Trades to view the time, price, yield and quantity of each trade.
Those trades listed include all trading activity occurring in that CUSIP across the US bond markets. In other words, they are not only Fidelity's most recent trades (if at all), or exclusively the trades of Fidelity's customers. The Buy/Sell row will display one of the following acronyms
For additional information, view the Buy/Sell term in the Recent Trades page. |
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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 |
| redemption price redemption price | the stated value of an investment at maturity when redeemed - typically at maturity or when called. For bonds and certificates of deposit (CDs), price is provided in terms of a percentage of face value or "par". For example, if you own 5 bonds, where each bond equals $1000 in face value with a redemption price of 100.00 then the Redemption Principal would be $5,000.00. 5 bonds x $1,000 x 100% = $5,000.00 |
| reopening—treasury issues reopening—treasury issues |
Additional amounts of a previously-issued security re-auctioned, or "reopened," during a Treasury auction. Reopened securities have the same maturity date and interest rate as the original securities, but a different issue date, and usually, a different price. The price of a reopened security is determined at auction. If the price of the reopened security is greater than its face value, the purchaser has to pay a premium. Regardless of the reopened security's price, purchases may have to pay accrued interest, the interest the security earned from its original issue date or most recent coupon date until the second auction date. Accrued interest is paid back to the investor in their first semiannual interest payment. |
| reset frequency reset frequency | how often the coupon rate will adjust for a stepped or variable rate security |
S
| S&P rating S&P rating |
a bond rating system provided by Standard & Poor's (S&P) to rate the quality of bonds based on the rating agency's assessment of the quality of the bonds (e.g., AAA is best quality, A- is a lower quality than AAA, etc.). A rating of BBB- is the lowest S&P credit rating that is still classified as investment grade.
In the S&P Rating field on some search results screens fixed income secondary market offerings (e.g., bond), this field displays the rating or NR, not rated, if Standard and Poor's Corporation has not rated the security. S&P is a registered service mark of The McGraw-Hill Companies, Inc. |
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| 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 |
| Secured Overnight Financing Rate (SOFR) Secured Overnight Financing Rate (SOFR) | the Secured Overnight Financing Rate (SOFR) is a benchmark that banks use to price short-term interest rates for U.S. dollar-denominated derivatives and loans. Its origins can be traced back to April 2018 when the New York Federal Reserve began publishing the rate as a potential replacement for the London interbank offer rate (LIBOR). The SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market and is seen as preferable to LIBOR since it is based on data from observable transactions rather than on estimated borrowing rates. Each business day, the New York Fed publishes the SOFR on their website at approximately 8:00 a.m. ET. For more information on the SOFR’s publication schedule and methodology, see Additional Information about Reference Rates Administered by the New York Fed. |
| SEDOL SEDOL | Stock Exchange Daily Official List – An identification code, consisting of seven alphanumeric characters, that is assigned to all securities trading on the London Stock Exchange and on other smaller exchanges in the U.K. |
| share amount share amount | amount of shares the bond or note is convertible into |
| sink defeased sink defeased | termination of certain of the rights and interests of the bondholders and of their lien on the pledged revenues or other security in accordance with the terms of the bond contract for an issue of securities. This is sometimes referred to as a "legal defeasance." Defeasance usually occurs in connection with the refunding of an outstanding issue after provision has been made for future payment of all obligations related to the outstanding bonds, sometimes from funds provided by the issuance of a new series of bonds. In some cases, particularly where the bond contract does not provide a procedure for termination of these rights, interests and lien other than through payment of all outstanding debt in full, funds deposited for future payment of the debt may make the pledged revenues available for other purposes without effecting a legal defeasance. This is sometimes referred to as an "economic defeasance" or "financial defeasance." If for some reason the funds deposited in an economic or financial defeasance prove insufficient to make future payment of the outstanding debt, the issuer would continue to be legally obligated to make payment on such debt from the pledged revenues |
| sinking fund price sinking fund price | The sinking fund price is the price, corresponding to a certain date, at which a given part of the bond issue could be redeemed by the issuer. Note that the issuer may be able to meet its sinking fund commitments by purchasing the bonds on the open market at a price below the quoted price on the schedule. |
| sinking fund protection sinking fund protection |
A sinking fund is a requirement included with certain bond issues, for part of the issue to be repaid on a regular basis before the stated maturity date of the bond. The issuer typically buys back a stated amount of the issue on a specified date—often having the flexibility to buy back from bond holders at the pre-specified price (usually par) or at the prevailing market price, whichever is cheaper. Like a call feature, sinking fund payments might begin soon after the bond has been issued or they may be deferred for 10 or more years from the date of issue. Consult the sinking fund schedule for this information. Unlike a call feature, however, if an issue has a sinking fund provision, it is a requirement, not an option, for the issuer to buy back the increments of the issue as stated. If you are considering the purchase of a bond with sinking fund features, be sure to consider (but don't rely on), the fact that a portion of the bonds issued may be returned before the maturity date. For example, even if the issuer has a commitment to buy back 5% of a given issue on a certain date, there is no guarantee that every investor will have 5% of their investment redeemed. The issuer may either purchase the required amount from a small number of institutions or purchase them on the open market. In some situations, the presence of a sinking fund could be regarded as a positive feature of a bond. It could be perceived as an additional solvency hurdle for the issuer because the issuer must find the necessary funds to return some of the debt issue's principal before the stated maturity date of the bond. Yet for this very reason sinking funds are frequently found on long-dated, lower quality issues. The presence of a sinking fund is not an added guarantee of an investment. In extreme circumstances a bond may be falling in price and the issuer will be able to meet all of its sinking fund commitments by purchasing on the open market. The weaker an issuer becomes, the more likely the bond's price is to fall and the more likely sinking fund commitments can be met by open market purchases. Sinking Fund Protection refers to a bond that does not have a sinking fund as part of its structure. On the Search Secondary Offerings page, the search criterion for Sinking Fund Protection defaults to Yes, which excludes bonds with a sinking fund feature. Selecting All will include bonds with sinking funds in your search returns. |
| 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 |
| special mandatory redemption special mandatory redemption | some types of mandatory redemptions occur either on a scheduled basis (made in specified amounts or in amounts then on deposit in the sinking fund) or whenever a specified amount of money is available in the sinking fund ("sinking fund redemptions"). A specific extraordinary redemption may be triggered by, among other things, bond proceeds remaining unexpended by a specified date (an "unexpended proceeds redemption"), a determination that interest on the bonds is taxable (a "tax call"), a change in use of a project financed with bond proceeds that would cause interest on the bonds to become taxable (a "change in use call"), a failure of the issuer to appropriate funds needed to pay debt service on lease rental bonds or certificates of participation that are subject to appropriation (an "appropriation or non-appropriation call"), or the destruction of the facilities from which the bonds are payable (a "calamity or catastrophe call"). |
| special optional redemption special optional redemption | optional redemptions often can be exercised only on or after a specified date, typically for a municipal security beginning approximately ten years after the issue date. The occurrence of certain one-time or extraordinary events specified in the bond contract (an "extraordinary redemption") may trigger an optional (an "extraordinary optional redemption") redemption. An extraordinary optional redemption may be triggered by, among other things, bond proceeds remaining unexpended by a specified date (an "unexpended proceeds redemption"), a determination that interest on the bonds is taxable (a "tax call"), a change in use of a project financed with bond proceeds that would cause interest on the bonds to become taxable (a "change in use call"), a failure of the issuer to appropriate funds needed to pay debt service on lease rental bonds or certificates of participation that are subject to appropriation (an "appropriation or non-appropriation call"), or the destruction of the facilities from which the bonds are payable (a "calamity or catastrophe call") |
| spread to treasury spread to treasury | the difference in yield between the offered yield of the bond you are researching and the yield of its Treasury of similar maturity. The spread is measured in percentage points. For example, if the Ask Yield to Worst on a corporate bond is 2.00%, and the Spread to Treasury of similar maturity is 0.50%, then the underlying Treasury's Ask Yield to Worst is 1.50%. 2.00% - 0.50% = 1.50% |
| 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 |
| symbol symbol | an identifier that is used throughout the financial community to identify a security. It is typically used to identify equities, including the ticker symbol for the underlying stock that a convertible security can convert into. Occasionally used as an identifier for exchange traded bonds |
T
| 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 |
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| 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 price third-party price |
depicts a security's price formulated from a third-party vendor's proprietary pricing methodology; to establish this modeled price, a host of factors such as recent trade activity, size, timing, and yields of comparable bonds are used; in the case of a comparable bond, the vendor assigns a "fair market" yield to the security, then extrapolates a representative price based on the fair market yield assigned; in many cases, this modeled price provides price discovery and transparency for bonds that may not have traded for days, months, or even years; understandably, in scenarios where a security hasn't traded recently, attempting to accurately predict the "market price" can be a challenging endeavor; nevertheless, the vendor prices bonds on a daily basis
Note: Given the nature of the modeled pricing provided, it is not accurate to characterize such pricing as a "closing price" or to suggest that the price was based on specific recent (prior day's end of day) trading activity |
| 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 |
| TRACE eligibility TRACE eligibility | identifies whether security is TRACE eligible or not. Eligible securities are determined by the FINRA and transactions in these securities are reported to the FINRA TRACE reporting engine by Fidelity |
| 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 benchmark treasury benchmark | the Treasury benchmark is selected as the Treasury bond with a maturity date closest to the bond you are studying. The Treasury benchmarks exclude zero coupon bonds and Treasury Bills |
| 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 |
U
| 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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V
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W
| workout date workout date | based on the current price and call schedule for a bond, this is the date when the bond is most likely to be called or redeemed |
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X
| (No entries) |
Y
| 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 |
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| 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 sink yield to sink | the rate of return to the investor earned from payments of principal and interest, with interest compounded (typically semi-annually) at the stated yield, presuming that the security is redeemed on the next scheduled sinking fund 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 |
Z
| (No entries) |
0 - 9
| 2nd previous factor 2nd previous factor | the month previous to the previous month’s decimal value reflecting the proportion of the outstanding principal balance of a mortgage security, which changes over time, in relation to its original principal value |
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| 2nd previous factor effective date 2nd previous factor effective date | the date that the month previous to the previous month’s proportion of the outstanding principal balance of a mortgage security became valid |
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