What Is an International Bond? An international bond is a debt obligation that is issued in a country by a non-domestic entity. Generally, it is denominated in the currency of its issuer’s native country. Like other bonds, it pays interest at specific intervals and pays its principal amount back to bondholder at maturity. International bonds…
What Does “Spider” Mean? Spider (SPDR) is a short form name for a Standard & Poor’s depository receipt, an exchange-traded fund (ETF) managed by State Street Global Advisors that tracks the Standard & Poor’s 500 index (S&P 500). Each share of an SPDR contains a 10th of the S&P 500 index and trades at roughly…
Mutual funds are pretty transparent. You can easily find out what stocks are in a mutual fund by searching online. Many financial sites list the holding of funds. The price of a share, often called a unit, is posted on these sites, and you can find it easily if you use an online discount broker…
What Is a Multi-Asset Class? A multi-asset class, also known as a multiple-asset class or multi-asset fund, is a combination of asset classes (such as cash, equity or bonds) used as an investment. A multi-asset class investment contains more than one asset class, thus creating a group or portfolio of assets. The weights and types…
Why Do Companies Issue 100-Year Bonds? Understanding the Strategy Behind Century Bonds In the financial world, one question often comes up among investors and analysts: Why would a company issue a bond that lasts 100 years? This article delves into the logic behind century bonds, examining why businesses take this unique approach to finance, how…
What Is a Gross Income Multiplier? A gross income multiplier (GIM) is a rough measure of the value of an investment property. It is calculated by dividing the property’s sale price by its gross annual rental income. Investors can use the GIM—along with other methods like the capitalization rate (cap rate) and discounted cash flow…
What Is a Contingent Deferred Sales Charge (CDSC)? A contingent deferred sales charge (CDSC) is a fee, sales charge or load, which mutual fund investors pay when selling Class-B fund shares within a specified number of years from the original purchase date. This fee is also known as a “back-end load” or “sales charge.” For…
What Is an Allocation Rate? An allocation rate is a percentage of an investor’s cash or capital outlay that goes toward a final investment. The allocation rate most often refers to the amount of capital invested in a product net of any fees that may be incurred through the investment transaction. An allocation rate may…
What Is a Net Lease? The term net lease refers to a contractual agreement where a lessee pays a portion or all of the taxes, insurance fees, and maintenance costs for a property in addition to rent. Net leases are commonly used in commercial real estate. In the purest form of a net lease, the tenant is…