What are Municipal Bond Sinking Funds, Super Sinkers, & Call Options? If you have been wondering you are not alone. This is one the most commonly searched terms on Google related to municipal bonds. […]
glossary
Total Return – What it is and How it Works
Total return is of particular interest to investors who pursue an active trading strategy and who seek to buy a bond when its price is low and sell when it is high, instead of holding to maturity…. […]
SIPC Insurance Coverage – What it is and How it Works
SIPC or Securities Investor Protection Corporation offers insurance to customers of a brokerage firm. The insurance protects client’s against losses related to the failure (bankruptcy) of the firm or fraud by the brokerage firm or its employees (money missing from customer accounts). […]
Yield to Maturity – What it is and How it Works
When investing in a bond that is trading at a premium or discount, the current yield is a misleading indicator for the total return you can expect. If you buy a bond trading at a discount, you will be paid the face value when held to maturity. As the face value is greater than… […]
Treasury Inflation Protected Securities (TIPS) – What They are and How They Work
Treasury Inflation Protected Securities (TIPS for short) are bonds issued by the US Treasury whose principal and coupon interest payments fluctuate along with inflation. More […]