germanyde
Credit investing glossary

Bond yield

In credit markets, valuation is reflected in the yield on the debt instrument. The bond yield represents the return to an investor who owns the bond and can be defined in various ways.

The current yield is one of the simplest representations of yield. It is the ratio of total annual cash flows to the bond holder relative to the current market price of the bond.

Current yield = Annual cash inflows/Market price

Consistently at the forefront of credit management
Consistently at the forefront of credit management
Credit investing
Should the price of a debt instrument trade lower owing to the view that it has become riskier, the yield on the debt instrument rises. For bonds with similar characteristics, those with higher perceived credit risk will trade at higher yields than those considered less risky.
Ten years of successful factor investing in credit markets
Ten years of successful factor investing in credit markets
A decade of live track-records shows that our factor-based credit investing approach delivers improved risk-adjusted returns compared to the market.
30-06-2022 | Einblicke
Credit outlook: The mess after the largesse
Credit outlook: The mess after the largesse
We have seen a very significant repricing of fixed income, but panic and volatility can also provide opportunities.
28-06-2022 | Einblicke
Inflation may be more about the destination than the peak
Inflation may be more about the destination than the peak
We’re facing a highly unusual inflationary situation.
22-06-2022 | Einblicke