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Definition of Held-to-Maturity Security
A debt security for which the investing entity has both the positive
A security that is collateralized by loans, leases, receivables, or installment contracts
The average time to maturity of securities held by a mutual fund. Changes in interest rates
Any large principal payment due at maturity for a bond or loan with or without a a sinking
A security that can be converted into common stock at the option of the security holder,
Current time to maturity on an outstanding debt instrument.
A financial security, such as an option, or future, whose value is derived in part from the
security that grants the security holder the right to exchange the security for the
A nonnegotiable debt security that can be redeemed at some fixed price or according to
The security to which a warrant is attached.
A convertible security whose optioned common stock is trading in a middle range, causing
Percentage of shares held by persons closely related to a company, as
For a bond, the date on which the principal is required to be repaid. In an interest rate swap, the
Factoring arrangement that provides collection and insurance of accounts receivable.
A phase of company development in which earnings continue to grow at the rate of the
The spread between any two maturity sectors of the bond market.
Related: par value.
Monthly income preferred security (MIP)
Preferred stock issued by a subsidiary located in a tax haven.
Mortgage pass-through security
Also called a passthrough, a security created when one or more mortgage
maturity at issue. For example, a five year note has an original maturity of 5 years; one
An instrument such as a stock or bond for which payments depend only on the financial
Projected maturity date
With CMOs, final payment at the end of the estimated cash flow window.
The length of time remaining until a bond's maturity.
A variant of pure expectations theory which suggests that the return that an
Piece of paper that proves ownership of stocks, bonds and other investments.
Security characteristic line
A plot of the excess return on a security over the risk-free rate as a function of
Security deposit (initial)
Synonymous with the term margin. A cash amount of funds that must be deposited
Security deposit (maintenance)
Related: Maintenance margin security market line (SML). A description of
Security market line
Line representing the relationship between expected return and market risk.
Security selection decision
Choosing the particular securities to include in a portfolio.
For the CMO tranche, the date the last payment would occur at zero CPR.
Term to maturity
The time remaining on a bond's life, or the date on which the debt will cease to exist and
Time to maturity
The time remaining until a financial contract expires. Also called time until expiration.
Options: the security subject to being purchased or sold upon exercise of an option
Variable price security
A security, such as stocks or bonds, that sells at a fluctuating, market-determined price.
Weighted average maturity
The WAM of a MBS is the weighted average of the remaining terms to maturity
Weighted average remaining maturity
The average remaining term of the mortgages underlying a MBS.
Yield to maturity
The percentage rate of return paid on a bond, note or other fixed income security if you
The date or the number of days until a security is due to be paid or
Security Market Line
A graph illustrating the equilibrium relationship between the
Yield to Maturity
The measure of the average rate of return that will be earned on a
A security that pays a specified cash flow over a
The date when the issuer returns the final face value of a bond
Yield to maturity
A measure of the average rate of return that will be earned
An easily traded investment, such as treasury bills, which is
A company that is entirely owned by a small number of people; further, its shares are not publicly traded.
Either the collateral on a loan, or some type of equity ownership or debt, such
security paying dividends or interest that vary with short-term interest rates.
Extra average return from investing in longversus short-term Treasury securities.
security market line
Relationship between expected return and beta.
yield to maturity
Interest rate for which the present value of the bond’s payments equals the price.
Time at which a bond can be redeemed for its face value.
Publicly Held National Debt
See national debt.
Term to Maturity
Period of time from the present to the redemption date of a bond.
Employee Retirement Income Security Act of 1974 (ERISA)
A federal Act that sets minimum operational and funding standards for employee benefit
Social Security Act of 1935
A federal Act establishing Old Age and Survivor’s
A debt or equity security not classified as a held-to-maturity security or a trading security. Can be classified as a current or noncurrent investment depending on the intended holding period.
A security representing a debt relationship with an enterprise, including a government
An ownership interest in an enterprise, including preferred and common stock.
A debt or equity security for which there is no posted price or bidand-
A share or an interest in a property or an enterprise such as a stock certificate or a bond.
A debt or equity security bought and held for sale in the near term to generate income on short-term price changes.
Date on which a debt is due for payment.
Collateral offered by a borrower to a lender to secure a loan.
The monetary value placed on security by a lender in determining the extent to which it can make loans against such security.
The time when a policy or annuity reaches the end of its span.
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