latames
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.
Perspectivas 2021: Resolver el trilema
Perspectivas 2021: Resolver el trilema
En 2021, el principal reto para las autoridades será encontrar el justo equilibrio entre tres cosas: la salud pública, el funcionamiento normal de la economía y la libertad personal.
19-11-2020 | Perspectiva anual
El vínculo entre ASG y rentabilidad: el crédito ODS pasa la prueba
El vínculo entre ASG y rentabilidad: el crédito ODS pasa la prueba
El análisis de atribución confirma que invertir de manera favorable a los ODS incide positivamente sobre los resultados financieros.
13-11-2020 | Visión
European banks face an earnings event, not a capital event
European banks face an earnings event, not a capital event
Although the extent of the economic contraction has been sizeable, and default rates are expected to rise further, our view is that banks will survive the pain.
28-10-2020 | Visión