WFixed income refers to any type of investment under which the borrower or issuer is obliged to make payments of a fixed amount on a fixed schedule. For example, the borrower may have to pay interest at a fixed rate once a year and repay the principal amount on maturity. Fixed-income securities — more commonly known as bonds — can be contrasted with equity securities – often referred to as stocks and shares – that create no obligation to pay dividends or any other form of income. Bonds carry a level of legal protections for investors that equity securities do not — in the event of a bankruptcy, bond holders would be repaid after liquidation of assets, whereas shareholders with stock often receive nothing in the event of bankruptcy.
WAn asset-backed securities index is a curated list of asset-backed security exposures that is used for performance bench-marking or trading.
WThe Bond Exchange of South Africa (BESA) was a South African bond exchange based in Johannesburg. It was acquired by the JSE Limited in 2009, and rebranded as the JSE Debt Market. The entity, now through the JSE Limited, operates and regulates the debt securities and interest rate derivatives markets in South Africa. Prior to its acquisition it was constituted as a public company.
WThe bond market is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market. This is usually in the form of bonds, but it may include notes, bills, and so for public and private expenditures. The bond market has largely been dominated by the United States, which accounts for about 39% of the market. As of 2021, the size of the bond market is estimated to be at $119 trillion worldwide and $46 trillion for the US market, according to Securities Industry and Financial Markets Association (SIFMA).
WCredit enhancement is the improvement of the credit profile of a structured financial transaction or the methods used to improve the credit profiles of such products or transactions. It is a key part of the securitization transaction in structured finance, and is important for credit rating agencies when rating a securitization.
WThe federal takeover of Fannie Mae and Freddie Mac was the placing into conservatorship of the government-sponsored enterprises (GSEs) Federal National Mortgage Association and Federal Home Loan Mortgage Corporation by the U.S. Treasury in September 2008. A conservatorship isn't a takeover of the ownership, but a status to rehabilitate corporations. The warrant that the U.S. Treasury bought was only authorized to protect the taxpayer, therefore it will be cancelled once the Treasury recovers its investment. It was one of the financial events among many in the subprime mortgage crisis.
WThe Bond Exchange of South Africa (BESA) was a South African bond exchange based in Johannesburg. It was acquired by the JSE Limited in 2009, and rebranded as the JSE Debt Market. The entity, now through the JSE Limited, operates and regulates the debt securities and interest rate derivatives markets in South Africa. Prior to its acquisition it was constituted as a public company.
WIn finance, unsecured debt refers to any type of debt or general obligation that is not protected by a guarantor, or collateralized by a lien on specific assets of the borrower in the case of a bankruptcy or liquidation or failure to meet the terms for repayment. Unsecured debts are sometimes called signature debt or personal loans. These differ from secured debt such as a mortgage, which is backed by a piece of real estate.
WIn finance, the yield curve is a graph which depicts how the yields on debt instruments - such as bonds - vary as a function of their years remaining to maturity. Typically, the graph's horizontal or x-axis is a time line of months or years remaining to maturity, with the shortest maturity on the left and progressively longer time periods on the right. The vertical or y-axis depicts the annualized yield to maturity.