Meaning PRICE COMPRESSION: The limitation of the price appreciation potential for a callable bond in a declining interest rate environment, based on the expectation that the bond will be redeemed at the call price
More terms such as Price compression in Dictionary P.
- Definition Preferred Stock Ratio:
- Examples Preferred stock at par value divided by total capitalization, which gives the portion of capitalization that consists of preferred stock price compression definition.
- Definition Put Price:
- Examples The price at which an asset will be sold if a put option is exercised. Also called the strike or exercise price of a put option price compression explain.
- Definition Piece:
- Examples Apply mainly to convertible securities. Increment of bonds that trade in portions of $1000 minimum. Not all bonds can be traded in pieces, and the increments can vary price compression what is.
- Definition Portfolio Turnover Rate:
- Examples For an investment company, an annualized rate found by dividing the lesser of purchases and sales by the average of portfolio assets price compression meaning.
- Definition Pickup Bond:
- Examples A bond with a relatively high coupon that is close to the date at which it is callable, meaning that a fall in interest rates will most likely cause early redemption of the bond at a premium price compression abbreviation.
