Updated August 6, 2024
Bond Characteristics
Searching and understanding the various bells and whistles of a bond can be quite confusing. Here are a few things to understand when searching for bonds on Silo.
Maturity Date
When viewing an issuer’s bond on Silo, the maturity date is shown on the maturity date slider on top.
- The maturity date is the date on when the bond ends. On this day, the principal amount (generally $1,000) will be paid back to you
Yield to Maturity
When viewing an issuer’s bond on Silo, the yield to maturity is the big number you may see on the top of the screen.
- The yield to maturity (YTM) is the total estimated return on a bond if it is held till it expires (its maturity date. The YTM factors in the current market price, coupon payments, and the time remaining until maturity
Bond Price
- The market value at which a bond trades, determined by factors such as interest rates, credit quality, and time to maturity
Bond Rating
- A credit rating assigned to a bond indicating its creditworthiness and risk of default, typically assigned by credit rating agencies such as Moody's, Standard & Poor's, or Fitch
Issue Date
- The date on which a bond’s life starts and the date in which it is made available for purchase by investors
Coupon Rate & Coupon Date
- The fixed interest rate paid by the issuer to the bondholder (you!), usually twice a year. The coupon rate is expressed as a percentage of the par value (usually $1,000)
- The date on which a bond issuer makes periodic interest payments to bondholders, typically occurring semiannually or annually
Callable, Call Price, & Call Date
- A type of bond that gives the issuer the right to redeem the bond before its maturity date, typically to take advantage of lower interest rates or other favorable conditions
- The price at which a callable bond can be redeemed by the issuer if it exercises its call option, often expressed as a percentage of the bond's face value
- The date on which an issuer has the option to end the bond before its maturity date, usually at a predetermined call price
Puttable
- A type of bond that gives the bondholder the option to sell the bond back to the issuer before its maturity date, typically at par value
ISIN / International Securities Identification Number
- A special code that is used to identify a certain bond. Tip: Hold down on this number in the app to look it up on the web
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