Bond Investment Mentor®

Understanding Bond Yield

Episode Summary

Chris explores the basics of bond yield, including what it is, how it works, and the different ways to measure this key investment return metric.

Episode Notes

Welcome to Bond Investment Mentor! This is a podcast dedicated to helping community financial institutions master the art of fixed-income investments.

In this episode:

• Recent FOMC decision - it's almost Taper Time! (1:41)
  • Steve Goldstein article (Marketwatch)
• Bloomberg tip:  Using the Paydown Information (PDI) screen (7:10)
  • For more information:  BondInvestmentMentor.com/PDI
• Effect of SBA rule change on fixed-rate SBA securities (9:05)
  • Federal Register rule announcement
• Understanding Yield
  • What is yield? (11:38)
  • Relationship between yield and total return, coupon rate, and price (13:22)
  • Yield to maturity (15:01)
  • Current (or market) yield (17:24)
  • Yield to call (18:03)
  • Yield to worst (19:41)
  • Tax-equivalent yield (20:09)
  • Yields on mortgage-backed securities (21:02)
• Learn about 1-on-1 mentoring! (22:35)
  • For more information:  BondInvestmentMentor.com/mentoring

If you have questions about anything covered in this episode, please email me at Chris @ BondInvestmentMentor.com.

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You will find more articles, tips and resources about fixed income investing and portfolio management at BondInvestmentMentor.com. Check it out!

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