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Inverted Yield Curve
An inverted yield curve occurs when long-term debt instruments have a lower yield than short-term debt instruments, often considered a forewarning of economic recession.
Convertible Bonds
Bonds issued by a corporation that can be converted into a predetermined number of the company's shares at certain times during the bond's life, usually at the discretion of the bondholder.
Bond Yields
The return an investor realizes on a bond, calculated as the annual interest payment divided by the bond's current market price.
Term Structure
The relationship between interest rates (or yields) and different maturities of debt securities, often depicted as a curve.
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