Benchmark Bond

Benchmark Bond
A bond that provides a standard against which the performance of other bonds can be measured. Government bonds are almost always used as benchmark bonds. Also referred to as "benchmark issue" or "bellwether issue".

More specifically, the benchmark is the latest issue within a given maturity. For a comparison to be appropriate and useful, the benchmark and the bond being measured against it should have a comparable liquidity, issue size and coupon.


Investment dictionary. . 2012.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • benchmark bond — The most recently issued and most liquid government bond. LIFFE …   Financial and business terms

  • benchmark — (1) A standard of comparison used for judging performance. For example, the return from a bond portfolio may be compared to the return from a benchmark instrument or portfolio. In this context, a nearly risk free benchmark or one that closely… …   Financial and business terms

  • Benchmark — The performance of a predetermined set of securities, for comparison purposes. Such sets may be based on published indexes or may be customized to suit an investment strategy. The New York Times Financial Glossary * * * ▪ I. benchmark bench‧mark… …   Financial and business terms

  • Bond Equity Earnings Yield Ratio - BEER — A metric used to evaluate the relationship between bond yields and earnings yields in the stock market. The Bond Equity Earnings Yield Ratio (BEER) has two parts – the top is represented by a benchmark bond yield (such as five or 10 year… …   Investment dictionary

  • Bond valuation — is the process of determining the fair price of a bond. As with any security or capital investment, the fair value of a bond is the present value of the stream of cash flows it is expected to generate. Hence, the price or value of a bond is… …   Wikipedia

  • Bond Buyer 11 — An average yield on a particular day of 11 selected general obligation municipal bonds with an average AA rating, maturing in 20 years. It is comprised of 11 of the 20 bonds in the Bond Buyer 20. The Bond Buyer 11 is published by The Bond Buyer… …   Investment dictionary

  • Benchmark — A standard against which the performance of a security, mutual fund or investment manager can be measured. Generally, broad market and market segment stock and bond indexes are used for this purpose. When evaluating the performance of any… …   Investment dictionary

  • High-Yield Bond Spread — The percentage difference in current yields of various classes of high yield bonds (often junk bonds) compared against investment grade corporate bonds, Treasury bonds or another benchmark bond measure. Spreads are often expressed as a difference …   Investment dictionary

  • Total Bond Fund — A mutual fund or exchange traded fund that seeks to replicate a broad bond index by owning many securities across a range of maturities, from both public and private sectors. The most common index used as a benchmark is the Lehman Aggregate Bond… …   Investment dictionary

  • CBV Vietnam Bond Indexes — (Copyright No 94/2008/QTG) is a listing of bonds or fixed income instruments and a statistic reflecting the composite value of its components. It is used as a benchmark to evaluate the market value of all Vietnam bonds.OverviewCBV Vietnam bond… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”