Corporate Bonds
What are Corporate Bonds? Corporate bonds are issued by corporations and usually mature within 1 to 30 years. The bonds usually offer a higher yield than government bonds but carry more risk. Corporate bonds can be categorized into groups, depending on the market sector the company operates in. They can also be differentiated based on...
Entry Multiple
What is Entry Multiple? An entry multiple, commonly used in leveraged buyouts, refers to the price paid for a company as a function of a financial metric. The entry multiple is crucial for private equity firms to know, as it helps them determine the purchase price of a company relative to a financial metric. It...
Metal Royalty and Streams
What are Metal Royalties and Streams? Metal royalty and streaming companies fund mines in exchange for money or precious metal. Mines often have trouble getting funding through traditional routes, such as banks, because of the high costs and unpredictable revenue associated with the mining industry. This is why they borrow funds from royalty and streaming companies....
Rolling Down the Yield Curve
What is Rolling Down the Yield Curve? Rolling down the yield curve is when investors sell bonds before their maturity date, in order to get a higher profit. This is a fixed income strategy that investors use in a low interest rate environment. The strategy gets its name from the fact that investors are selling...
Bretton Woods Agreement
What is the Bretton Woods Agreement? The Bretton Woods Agreement was reached in a 1944 summit held in New Hampshire, USA on a site by the same name. The agreement was reached by 730 delegates, who were the representatives of the 44 allied nations that attended the summit. The delegates, within the agreement, used the...
