Beta is a relative measure of the sensitivity of portfolio return to changes in the benchmark return.  The Beta (or Slope) between two portfolios is the amount the first portfolio moves when the other moves by one unit.  For example a beta of 0.5 implies that if the...

Benchmark is a rate (such as risk-free or interest rate), security or basket of securities the portfolio's relative performance is measured against.

In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and to repay the principal at a later date, referred to as  maturity. A bond is a formal...

First derivative of bond price sensitivity to interest rate movement. Can be expressed in % or years.

A clean price is the price of a bond without accrued interest.

The dirty price is the total price of a bond including accrued interest.

The spread is the difference between yields on 2 securities. Spreads are usually measured as difference between given bond's yield and a risk-free rate of corresponding maturity, or as difference between yields of 2 bonds of comparable features but different...

A measure of the curvature in the relationship between bond prices and bond yields that demonstrates how the duration of a bond changes as the interest rate changes. Convexity is the second order derivative of bond price's sensitivity to interest rate changes, with...

Bond yield is the internal rate of return (IRR) that discounts its principal and coupon payments to its current traded price. It is expressed in % and is inversely related to bond’s price – the higher the bond’s price, the lower the yield, and vice versa. Yield is the...

Covariance, computed using the set of Bear returns, or the set of Bull returns.

Beta, computed using the set of Bear returns, or the set of Bull returns. Bear/Bull-Market Beta is a relative measure of the sensitivity of a funds return to negative/positive changes in the benchmark return.  This breaks down the beta to show whether...

Correlation, computed using the set of Bear returns, or the set of Bull returns.

The average Bear return, or the average Bull return. The average is the arithmetic mean of the set of returns.

The Bear/Bull-Market Capture Ratio is a ratio of Bull or Bear return of the portfolio to the Bull or Bear return of the benchmark.

Bear statistics are computed using only those returns occurring during negative market periods, i.e. those periods for which the benchmark return is less than or equal to zero. Conversely, bull statistics are based on returns occurring during positive benchmark periods.

A credit default swap (CDS) is an agreement that the seller of the CDS will compensate the buyer in the event of underlying bond default. The buyer of the CDS makes a series of payments (the CDS “fee” or “spread”) to the seller and, in exchange, receives a payoff if...

A financial institution that has the legal responsibility for a customer's securities.