![]() |
|
Financial Terms | |
Non-parallel shift in the yield curve |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: financial, inventory, financial advisor, accounting, credit, business, payroll, investment, Also see related: mortgage, home, condo, homebuying, real estate, home insurance, property, first time homebuyer, homebuyer, |
Definition of Non-parallel shift in the yield curveNon-parallel shift in the yield curveA shift in the yield curve in which yields do not change by the same
Related Terms:Aggregate Demand CurveCombinations of the price level and income for which the goods and services market is in equilibrium, or for which both the goods and services market and the money market are in equilibrium. Aggregate Expenditure CurveAggregate demand for goods and services drawn as a function of the level of national income. Aggregate Supply CurveCombinations of price level and income for which the labor market is in equilibrium. The short-run aggregate supply curve incorporates information and price/wage inflexibilities in the labor market, whereas the long-run aggregate supply curve does not. All or noneRequirement that none of an order be executed unless all of it can be executed at the specified price. All-or-none underwritingAn arrangement whereby a security issue is canceled if the underwriter is unable Annual percentage yield (APY)The effective, or true, annual rate of return. The APY is the rate actually Bond equivalent yieldBond yield calculated on an annual percentage rate method. Differs from annual ![]() Bond-equivalent yieldThe annualized yield to maturity computed by doubling the semiannual yield. Bond Equivalent YieldBond yield calculated on an annual percentage rate method Butterfly shiftA non-parallel shift in the yield curve involving the height of the curve. Capital gains yieldThe price change portion of a stock's return. Convenience yieldThe extra advantage that firms derive from holding the commodity rather than the future. Coupon equivalent yieldTrue interest cost expressed on the basis of a 365-day year. Current yieldFor bonds or notes, the coupon rate divided by the market price of the bond. current yieldAnnual coupon payments divided by bond price. Current YieldThe percentage return on a financial asset based on the current price of the asset, without reference to any expected change in the price of the asset. This contrasts with yield-to-maturity, for which the calculation includes expected price changes. See also yield. ![]() Discount curveThe curve of discount rates vs. maturity dates for bonds. Dividend yield (Funds)Indicated yield represents return on a share of a mutual fund held over the past 12 dividend yield ratioCash dividends paid by a business over the most Dividend yield (Stocks)Indicated yield represents annual dividends divided by current stock price. Earnings yieldThe ratio of earnings per share after allowing for tax and interest payments on fixed interest Effective annual yieldAnnualized interest rate on a security computed using compound interest techniques. Effective Annual YieldAnnualized rate of return on a security computed using compound Equivalent bond yieldAnnual yield on a short-term, non-interest bearing security calculated so as to be Equivalent taxable yieldThe yield that must be offered on a taxable bond issue to give the same after-tax Flattening of the yield curveA change in the yield curve where the spread between the yield on a long-term High-yield bondSee:junk bond. Indicated yieldThe yield, based on the most recent quarterly rate times four. To determine the yield, divide Indifference curveThe graphical expression of a utility function, where the horizontal axis measures risk and J-curveTheory that says a country's trade deficit will initially worsen after its currency depreciates because labor yield variance(standard mix X actual hours X standard rate) - (standard mix X standard hours X standard rate); Laffer Curvecurve showing how tax receipts vary with the tax rate. learning curvea model that helps predict how labor time Liquid yield option note (LYON)Zero-coupon, callable, putable, convertible bond invented by Merrill Liquid yield option note (LYON)Zero-coupon, callable, putable, convertible bond invented by Merrill Lynch & Co. material yield variance(standard mix X actual quantity X standard price) - (standard mix X standard quantity X standard price); Monetary / non-monetary methodUnder this translation method, monetary items (e.g. cash, accounts Non-cumulative preferred stockPreferred stock whose holders must forgo dividend payments when the Non-financial servicesInclude such things as freight, insurance, passenger services, and travel. Non-insured plansDefined benefit pension plans that are not guaranteed by life insurance products. Related: Non-Medical LimitThis is the maximum value of a policy that an insurance company will issue without the applicant taking a medical examination, although medical questions are invariably asked during the application process. When a non-medical issue is made through group insurance, in most cases, medical data is not requested at all. non-negativity constrainta restriction in a linear programming Non-participating PolicyA type of insurance policy or annuity in which the owner does not receive dividends. Non-production overheadA general term referring to period costs, such as selling, administration and financial expenses. Non-reproducible assetsA tangible asset with unique physical properties, like a parcel of land, a mine, or a Non-Smoker DiscountIn October 1996 it was announced in the international news that scientists had finally located the link between cigarette smoking and lung cancer. In the early 1980's, some Canadian Life Insurance Companies had already started recognizing that non-smokers had a better life expectancy than smokers so commenced offering premium discounts for life insurance to new applicants who have been non-smokers for at least 12 months before applying for coverage. Today, most life insurance companies offer these discounts. Non-tradablesRefer to goods and services produced and consumed domestically that are not close non-value-added (NVA) activityan activity that increases the time spent on a product or service but that does not increase its worth or value to the customer Noncash chargeA cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow. Noncompetitive bidIn a Treasury auction, bidding for a specific amount of securities at the price, whatever it Nonconforming materialAny inventory item that does not match its original design noncontrollable variancethe fixed overhead volume variance; Nondiversifiability of human capitalThe difficulty of diversifying one's human capital (the unique Nondiversifiable riskRisk that cannot be eliminated by diversification. Nonmarketable SecurityA debt or equity security for which there is no posted price or bidand- Nonmarketed claimsClaims that cannot be easily bought and sold in the financial markets, such as those of Nonqualified Retirement PlanA pension plan that does not follow ERISA and Nonqualified Stock OptionA stock option not given any favorable tax treatment NonrecourseWithout recourse, as in a non-recourse lease. Nonrecurring ItemsRevenues or gains and expenses or losses that are not expected to recur NonredeemableNot permitted, under the terms of indenture, to be redeemed. NonrefundableNot permitted, under the terms of indenture, to be refundable. Nonsignificant part numberAn identifying number assigned to a part that conveys Nonsystematic risknonmarket or firm-specific risk factors that can be eliminated by diversification. Also NSF (non-sufficient funds)This appears on your statement if there are insufficient funds in your account to cover a cheque that you have written or a pre-authorized payment that you have already arranged. You will be charged a service fee for non-sufficient funds. Par yield curveThe yield curve of bonds selling at par, or face, value. Parallel loanA process whereby two companies in different countries borrow each other's currency for a Parallel shift in the yield curveA shift in the yield curve in which the change in the yield on all maturities is Phillips CurveRelationship between inflation and unemployment. process quality yieldthe proportion of good units that resulted from the activities expended Production yield varianceThe difference between the actual and budgeted proportions Pure yield pickup swapMoving to higher yield bonds. Realized compound yieldyield assuming that coupon payments are invested at the going market interest Relative yield spreadThe ratio of the yield spread to the yield level. Reoffering yieldIn a purchase and sale, the yield to maturity at which the underwriter offers to sell the bonds Required yieldGenerally referring to bonds, the yield required by the marketplace to match available returns Riding the yield curveBuying long-term bonds in anticipation of capital gains as yields fall with the Spot curve, spot yield curveSee Zero curve. Spot rate curveThe graphical depiction of the relationship between the spot rates and maturity. Steepening of the yield curveA change in the yield curve where the spread between the yield on a long-term Stopping curveA curve showing the refunding rates for different points in time at which the expected value Stopping curve refunding rateA refunding rate that falls on the stopping curve. Theoretical spot rate curveA curve derived from theoretical considerations as applied to the yields of Weighted average portfolio yieldThe weighted average of the yield of all the bonds in a portfolio. YieldThe percentage rate of return paid on a stock in the form of dividends, or the effective rate of interest yieldthe quantity of output that results from a specified input Yield a. Measure of return on an investment, stated as a percentage of price. YieldThe interest rate that makes the present value of a stream of future payments associated with an asset equal to the current price of that asset. Also called yield to maturity. See also current yield. Yield curveThe graphical depiction of the relationship between the yield on bonds of the same credit quality Yield CurveA graphical representation of the level of interest rates for Yield curveGraph of yields (vertical axis) of a particular type of security yield curveGraph of the relationship between time to maturity and yield to maturity. Yield curveA graph showing how the yield on bonds varies with time to maturity. Yield curve option-pricing modelsModels that can incorporate different volatility assumptions along the Yield curve strategiesPositioning a portfolio to capitalize on expected changes in the shape of the Treasury yield curve. Yield ratioThe quotient of two bond yields. yield ratiothe expected or actual relationship between input and output Yield spread strategiesStrategies that involve positioning a portfolio to capitalize on expected changes in Yield to callThe percentage rate of a bond or note, if you were to buy and hold the security until the call date. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |