What Is a Yankee Bond? A Yankee bond is a debt obligation issued by a foreign entity, such as a government or company, which is traded in the United States and denominated in U.S. dollars. key takeaways A Yankee bond is a debt obligation denominated in U.S. dollars that is publicly issued in the U.S….
What Is an Unamortized Bond Discount? An unamortized bond discount is an accounting methodology for certain bonds. The unamortized bond discount is the difference between the par value of a bond—its value at maturity—and the proceeds from the sale of the bond by the issuing company, less the portion that has already been amortized (written…
What Is a Trust Indenture? A trust indenture is an agreement in a bond contract made between a bond issuer and a trustee that represents the bondholder’s interests by highlighting the rules and responsibilities that each party must adhere to. It may also indicate where the income stream for the bond is derived from. key…
What Is a Debt Bomb? A debt bomb is a situation occurring when a major financial institution, such as a multinational bank, defaults on its obligations which, in turn, causes disruption not only in the financial system of the institution’s home country but also in the global financial system as a whole. Key Takeaways A…
What Is the Composite Index of Lagging Indicators? The Composite Index of Lagging Indicators is an index published monthly by the Conference Boardused to confirm and assess the direction of the economy’s movements over recent months. Key Takeaways The Composite Index of Lagging Indicators is a composite economic indicator that lags behind changes in the…
Experience Peter H. Westfall is a distinguished professor of information systems and quantitative sciences at Texas Tech University. He has a PhD in statistics and 30+ years of teaching, research, writing, and consulting experience. Peter teaches and performs statistical research with a focus on advanced statistical methods, regression analysis, multivariate analysis, mathematical statistics, and data…
What Was the Foreclosure Crisis? The foreclosure crisis was a period of drastically elevated property seizures in the U.S. housing market between 2007 and 2010. The foreclosure crisis was one aspect of the financial crisis and Great Recession that developed during this period. The excessive extension of mortgage credit, complicated schemes of mortgage debt securitization,…
What Is Value Deflation? Value deflation, or shrinkflationoccurs when retailers and service providers cut their costs and sell smaller packages, give out smaller portions, or generally provide less for the same price so as to maintain the same sticker price. Businesses may do this as a way of stealthily raising prices when costs are rising…
Cost and price are often used interchangeably, however, the two words mean something different when it comes to accounting and financial statements. When conducting financial analysis or making investment decisions, it’s important to understand the difference between cost and price and how they impact a company’s financial profile. Key Takeaways Cost is typically the expense…