What Is a Bond Discount? Bond discount is the amount by which the market price of a bond is lower than its principal amount due at maturity. This amount, called its par value, is often $1,000. The primary features of a bond are its coupon rate, face value, and market price. An issuer makes coupon
What Is a Bond ETF? Bond exchange-traded funds (ETFs) are a type of exchange-traded fund (ETF) that exclusively invests in bonds. These are similar to bond mutual funds because they hold a portfolio of bonds with different particular strategies—from U.S. Treasuries to high yields—and holding period—between long-term and short-term. Bond ETFs are passively managed and trade, similar to stock ETFs on major
What Is Bond-for-Bond Lending? Bond-for-bond lending is a lending structure used in the U.S. Federal Reserve Bank’s security lending facility. Borrowers, typically commercial banks, receive a loan of bonds by using all or a portion of their own portfolio of bonds for collateral. The bond-for-bond lending structure is different from the Federal Reserve’s traditional cash
What Is a Block Trade? A block trade is a large, privately negotiated securities transaction. Block trades are arranged away from public markets to lessen the effect on the security’s price. They are usually carried out by hedge funds and institutional investors via investment banks and other intermediaries, though high-net-worth accredited investors may also be eligible
What Is a Bloomberg Terminal? A Bloomberg terminal is a computer system that allows investors to access the Bloomberg data service, which provides real-time global financial data, news feeds, and messages. Investors can also use the Bloomberg terminal’s trading system to facilitate the placement of financial transactions, such as stock and options trades. Bloomberg charges
What Is a Blotter? A blotter (also called a deal blotter or trade blotter) is a physical or digital record of all trades made over a period of time (usually one trading day) along with their relevant details. Key Takeaways A blotter is a detailed record of one’s trading activity and history.Clearing firms and regulatory
What Is a Blow Up? Blow up is a slang term used to describe the complete and abject failure of an individual, corporation, bank, development project, hedge fund, etc. The term is most often used when a hedge fund fails but is not exclusive to them. Key Takeaways A blow up describes the complete and
What Is the Bureau of Labor Statistics (BLS)? The Bureau of Labor Statistics (BLS) is a federal agency that collects and disseminates various data about the U.S. economy and labor market. Its reports include the Consumer Price Index (CPI) and the Producer Price Index (PPI), both of which are considered to be important measures of inflation.
What Is a Blue Book? The Blue Book or Kelley Blue Book is a guidebook that compiles and quotes prices for new and used automobiles and other vehicles of all makes, models, and types. First published in 1926 by Los Angeles car dealer Les Kelley, the Blue Book was originally only available to those in
What Is a Blue Chip? A blue chip is a nationally or internationally recognized, well-established, and financially sound company that is publicly traded. Blue chips generally sell high-quality, widely accepted products and services. Blue chip companies have reputable brands that have been built and maintained over many years. That and the fact that they have
