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Created by Hanoi Stock Exchange, [2] Vietnam Bond Indexes have following structure: [3]. The Bond-Index is built based on treasury bonds, which account for 71 percent of the total value of listed Government bonds and are low-risk commodities, serving as a base for investors to assess other bonds in the market.
VN30 Equal Weight Index tracks the total performance of the top 30 large-cap, liquid stocks listed on the Ho Chi Minh City stock exchange along with two popular indices in Vietnam: VN Index and VN30 Index. All index constituents are equal-weighted to help investors deal with liquidity, foreign ownership and state-owned enterprise constraints ...
There is a time dimension to the analysis of bond values. A 10-year bond at purchase becomes a 9-year bond a year later, and the year after it becomes an 8-year bond, etc. Each year the bond moves incrementally closer to maturity, resulting in lower volatility and shorter duration and demanding a lower interest rate when the yield curve is rising.
An overnight indexed swap (OIS) is an interest rate swap (IRS) over some given term, e.g. 10Y, where the periodic fixed payments are tied to a given fixed rate while the periodic floating payments are tied to a floating rate calculated from a daily compounded overnight rate over the floating coupon period. Note that the OIS term is not ...
An inverted yield curve is an unusual phenomenon; bonds with shorter maturities generally provide lower yields than longer term bonds. [2] [3] To determine whether the yield curve is inverted, it is a common practice to compare the yield on the 10-year U.S. Treasury bond to either a 2-year Treasury note or a 3-month Treasury bill. If the 10 ...
In finance, bootstrapping is a method for constructing a (zero-coupon) fixed-income yield curve from the prices of a set of coupon-bearing products, e.g. bonds and swaps. [ 1 ] A bootstrapped curve , correspondingly, is one where the prices of the instruments used as an input to the curve, will be an exact output , when these same instruments ...
For example, the annuity above has a Macaulay duration of 4.8 years, and we might think that it is sensitive to the 5-year yield. But it has cash flows out to 10 years and thus will be sensitive to 10-year yields. If we want to measure sensitivity to parts of the yield curve, we need to consider key rate durations.
Yield to put (YTP): same as yield to call, but when the bond holder has the option to sell the bond back to the issuer at a fixed price on specified date. Yield to worst (YTW): when a bond is callable, puttable, exchangeable, or has other features, the yield to worst is the lowest yield of yield to maturity, yield to call, yield to put, and others.