A measure of the relative ease and speed with which a security can be purchased or sold in the secondary market.
A measure of the relative ease and speed with which a security can be purchased or sold in the secondary market can be converted into cash.
The risk that a trader or investor may not be able to take or unwind a position at a particular time because of insufficient market volume or the absence of willing counter parties.
Securities that are owned by a dealer or investor.
Debt which matures in more than one year.
For securities traded through an exchange, the last reported price at which a security was sold; for securities traded “over-the-counter,” the current price of the security in the market.
The volatility of a stock price relative to the overall market or index as indicated by beta.
The feeling, sentiment, or tone of a market. This is usually shown by the activity or price movement of the securities represented within the market. For example, a bullish market sentiment would be indicated by rising prices and strong demand for securities, while a bearish sentiment would be indicated by falling prices and a lack of demand for securities.
Attempting to leave the market entirely during downturns and reinvesting when it heads back up.
The date when the principal amount of a security is due to be repaid.
A debt security issued under a program that allows an issuer to offer notes continuously to investors through an agent. The size and terms of medium-term notes may be customized to meet investors’ needs. Maturities can range from one to 30 years.
Duration adjusted to price and yield levels to represent percent change relationship of price and yield.
A common trust fund or mutual fund that aims to pay money market interest rates. This is accomplished by investing in safe, highly liquid securities, including bank certificates of deposit, commercial paper, U.S. government securities and repurchase agreements. Money funds make these high interest securities available to the average investor seeking immediate income and high investment safety.
A legal instrument that creates a lien upon real estate securing the payment of a specific debt.
Mortgage-backed securities, called MBS are bonds or notes backed by mortgages on residential or commercial properties—an investor is purchasing an interest in pools of loans or other financial assets. As the underlying loans are paid off by the borrowers, the investors in MBS receive payments of interest and principal over time. The MBS market is for institutional investors and is not suitable for individual investors.
An entity that originates mortgage loans sells them to investors and services the loans.
A loan secured by a mortgage.
A debt instrument representing a direct interest in a pool of mortgage loans. The pass-through issuer or servicer collects the payments on the loans in the pool and “passes through” the principal and interest to the security holders on a pro rata basis.
A security issued by state, certain agencies or authorities, or a local government to make or purchase loans (including mortgages or other owner-financing) with respect to single-family or multifamily residences.
A bond issued by a state or local governmental unit.
Measure of credit risk of municipal bonds relative to risk-free securities, Treasuries. It is a measure comparable to the “spread to Treasury” measure in the taxable markets. Note that the municipal yield is typically less than 100 percent of the Treasury yield due to the tax-free nature of municipal securities.
An open-end investment company that buys back or redeems its shares at current net asset value. Most mutual funds continuously offer new shares to investors.
Investment companies that invest pooled cash of many investors to meet the fund’s stated investment objective. Mutual funds stand ready to sell and redeem their shares at any time at the fund’s current net asset value: total fund assets divided by shares outstanding.