An asset-backed commercial paper (ABCP) is a short-term investment vehicle with a maturity that is typically between 90 and 270 days.

An asset-backed commercial paper (ABCP) is a short-term investment vehicle with a maturity date that is typically between 90 and 270 days. The primary difference between commercial paper (CP) and asset-backed commercial paper (ABCP) is that commercial paper is not backed by assets. A type of commercial paper that is backed by other financial assets is called an asset-backed commercial paper. Asset-backed commercial paper (ABCP) is a short-term money-market security that is issued by a special purpose vehicle (SPV) or conduit, which is set up by a sponsoring financial institution. An asset-backed commercial paper (ABCP) is a type of short-term investment with a maturity date of no more than 270 days.

Asset-Backed Commercial Paper (ABCP)

The Fixed Income Clearing Corporation (FICC) is an agency that deals with the confirmation, settlement and delivery of fixed-income assets in the U.S.

The Fixed Income Clearing Corporation (FICC) is a regulatory agency that deals with the confirmation, settlement, and delivery of fixed-income assets in the U.S. The Fixed Income Clearing Corporation (FICC) is a clearinghouse for certain fixed-income securities traded in the U.S.
The FICC began operating in 2003 as a result of the merger of the Government Securities Clearing Corporation and the Mortgage-Backed Security Clearing Corporation. The MBS division of the FICC provides real-time automated and trade matching, trade confirmation, risk management, netting, and electronic pool notification (EPN) to the MBS market. Securities transactions processed by the FICC's GDS include Treasury bills, bonds, notes, zero-coupon securities, government agency securities, and inflation-indexed securities. The FICC started operations at the start of 2003 and was created when the Government Securities Clearing Corporation (GSCC) and the Mortgage-Backed Security Clearing Corporation (MBSCC) merged.

Fixed Income Clearing Corporation (FICC)

A negative bond yield is an unusual situation in which issuers of debt are paid to borrow and depositors, or buyers of bonds, pay a cash flow.

A negative bond yield is when an investor receives less money at the bond's maturity than the original purchase price for the bond. A negative bond yield is when an investor receives less money at the bond's maturity than the original purchase price for the bond. A negative bond yield is when an investor receives less money at the bond's maturity than the original purchase price for the bond. Even when factoring in the coupon rate or interest rate paid by the bond, a negative-yielding bond means the investor lost money at maturity. Remember that a bond's price moves inversely with its yield or interest rate; the higher the price of a bond, the lower the yield.

What Is a Negative Bond Yield?

A non-marketable security is one that is hard to trade since it doesn't appear on a normal market or exchange and can be costly to trade.

A non-marketable security is an asset that is difficult to buy or sell due to the fact that they are not traded on any major secondary market exchanges. For the holder of a non-marketable security, finding a buyer can be difficult, and some non-marketable securities cannot be resold at all because government regulations prohibit any resale. Non-marketable securities, however, are not subject to the demand changes in a secondary trading market and, therefore, have only their intrinsic value, but no market value. Common examples of nonmarketable securities include U.S. savings bonds, rural electrification certificates, private shares, state and local government securities, and federal government series bonds. The intrinsic value of a non-marketable security, depending on the structure of the security, can be considered as either its face value, the amount payable upon maturity or its purchase price plus interest.

Non-Marketable Security

The normal yield curve is a yield curve in which short-term debt instruments have a lower yield than long-term debt instruments of the same credit quality.

The normal yield curve is a yield curve in which short-term debt instruments have a lower yield than long-term debt instruments of the same credit quality. The normal yield curve is a yield curve in which short-term debt instruments have a lower yield than long-term debt instruments of the same credit quality. The normal yield curve is a yield curve in which short-term debt instruments have a lower yield than long-term debt instruments of the same credit quality. When there is an upward sloping yield curve, this typically indicates an expectation across financial markets of higher interest rates in the future; a downward sloping yield curve predicts lower rates. Analysts look to the slope of the yield curve for clues about how future short-term interest rates will trend.

Normal Yield Curve

Riding the yield curve involves buying a bond and selling it before it matures, profiting from the declining yield that occurs over the life of a bond.

Riding the yield curve is a trading strategy that involves buying a long-term bond and selling it before it matures so as to profit from the declining yield that occurs over the life of a bond. If rates rise, then the return may be less than the yield that results from riding the curve and could even fall below the return of the bond that matches the investor’s investment horizon, thereby, resulting in a capital loss.
In addition, this strategy produces excess returns only when longer-term interest rates are higher than shorter-term rates. For example, an investor with a three-month investment horizon may buy a six-month bond because it has a higher yield; the investor sells the bond at the three-month date, but profits from the higher six-month yield. In other words, a portfolio manager or investor with a three-month holding period horizon buys a six-month bond—which has a higher yield than the three-month bond—and then sells the bond at the three-month horizon date. Riding the yield curve is a trading strategy that involves buying a long-term bond and selling it before it matures so as to profit from the declining yield that occurs over the life of a bond.

Fixed Income Trading

More in Trading

Terms in Fixed Income Trading

Asset-Backed Commercial Paper (ABCP)

Fixed Income Clearing Corporation (FICC)

What Is a Negative Bond Yield?

Non-Marketable Security

Normal Yield Curve

Riding the Yield Curve