A BNY MELLON COMPANY

Insights & Ideas

Glossary | Y

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | Y | Z | 0-9

Yankee Bond Market: A market for dollar-denominated bonds issued in the U.S. by foreign corporations, banks and governments.

Yankee-Dollar CDs: Negotiable Certificates of Deposit issued in the U.S. by branches and agencies of foreign banks.

Yield: The interest or dividends paid by a company expressed as a percentage of the current price. Also known as Return.

Yield Curve: The relationship at any given point in time between yields on fixed-income securities with varying maturities — commonly, Treasury bills, notes and bonds. The curve typically slopes upward because longer maturities normally have higher yields, although it could be flat, even "inverted" or downward sloping.

Yield Spread: The difference in yields between two fixed-income groups such as high-grade corporates and junk issues.

Yield to Call: Yield that would be realized on a bond in the event it was redeemed by the issuer on the next available call date.

Yield to Maturity: The compound annual total return expected on a bond investment if it is held to maturity and the issuer makes all promised payments on time and in full. To realize this return, you must be able to reinvest each interest payment at a rate equal to the yield to maturity.