Term Explanations/Definitions
Bond A loan, usually taken out by a government or company, which normally pays a fixed rate of interest over a given time period, at the end of which the loan is repaid.
Fixed income security See bond
Issuer An entity that sells securities, such as bonds and equities.
Monetary easing When central banks lower interest rates or buy securities on the open market to increase the money in circulation.
Yield (bonds) This refers to the interest received from a bond and is usually expressed annually as a percentage based on the investment’s cost, its current market value or its face value.