latamen
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.
Credit outlook: Markets already have the vaccine
Credit outlook: Markets already have the vaccine
The world is waiting for a vaccine that will enable us to return to our normal lives.
29-09-2020 | Insight
Broadening credit opportunities through emerging market corporate debt
Broadening credit opportunities through emerging market corporate debt
It is a misperception that emerging market companies are small, risky and single-focused.
03-07-2020 | Interview
Credit outlook: The rules have changed
Credit outlook: The rules have changed
The ‘common enemy’ elicited a massive unconventional, coordinated series of stimulus by policy makers.
24-06-2020 | Insight