Fixed Income

The highest major credit rating, used to signal very low expected default risk.

A security whose cash flows come from a pool of underlying loans or receivables.

A basis point is one hundredth of a percentage point, used to describe small changes in rates, yields, and spreads.

BBB is a credit rating at the lower end of investment grade, indicating adequate capacity to meet obligations but meaningful exposure to adverse conditions.

A bearer bond is a bond owned by whoever physically holds the certificate rather than by a registered owner.

In finance, a bill is a short-term debt instrument, usually sold at a discount and maturing in less than a year.

A bond is a debt security in which an investor lends money to an issuer in exchange for coupons and repayment at maturity.

A bond default swap usually refers to a credit default swap written on a bond, transferring default risk from the protection buyer to the protection seller.

A bond-rating agency evaluates the creditworthiness of bond issuers and assigns ratings that summarize default risk.

A bond-like security backed by the cash flows from a pool of mortgage loans.