UpREIT vs DownREIT
What is UpREIT vs DownREIT? The terms UpREIT vs DownREIT describe the differences that exist in the corporate structure of REITs. The concept of UpREIT, which stands for “Umbrella Partnership Real Estate Investment Trusts,” was introduced in 1992. An UpREIT allows long-established REITs to pool all the real estate properties that they own under a...
Synthetic Cash
What is Synthetic Cash? Synthetic cash is a financial instrument that is created to function like other financial instruments, but certain characteristics of the simulated financial instrument are altered. The simulated instruments may not necessarily exist. Synthetic cash provides investors with patterns of cash flows that are specifically tailored to them. It also offers investors...
Dollar Duration
What is Dollar Duration? Dollar duration is a bond analysis method that helps an investor ascertain the sensitivity of bond prices to interest rates changes. The method measures the change in the price of a bond for every 100 bps (basis points) of change in interest rates. Dollar duration can be applied to any fixed...
Bond Tender Offer
What is a Bond Tender Offer? A bond tender offer, also known as a debt tender offer, is a term used in corporate finance to denote the process of a company retiring its debt. It is done by making an offer to the company’s existing bondholders to repurchase a specified number of bonds at a...
Basis Point Value
What is Basis Point Value? Basis point value is a measure of the change in the price of a bond that can be attributed to the per unit change in the yield of the given bond. Therefore, it is a measure of the price volatility of bond prices to 0.01% or 1 basis point change...
