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Discount Margin

The flat yield spread that is required to reprice a floating rate security (floater, floating-rate bond, etc.) to par. It...

Reverse a Swap

The process that involves restoring a bond portfolio to its former position before the original swap. This may usually take...

Yield Spread

The difference in yield to maturity (YTM) between two bonds (bond issues) or two classes of bonds with similar maturities....

Relative Yield Spread

The relative difference in yield to maturity (YTM) between two bonds (bond issues) or two classes of bonds with similar maturities. It is the ratio of the yield...