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Tag: investment strategy

Bond sitting on a balance scale, with a par value side and a discounted price side. The bond shifts closer to the par value side as it approaches maturity.

Understanding Accretion of Discount: An Essential Concept for Institutional Investors

April 7, 2024 FinanceFacts101 Corporate Finance

What is the Accretion of Discount? The term ‘accretion of discount’ refers to the increase in value of a bond that has been purchased at a discounted price as it approaches its maturity date. This process occurs due to the difference between the bond’s market price and its par value,

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Understanding Absolute Return: A Comprehensive Guide for Institutional Investors

April 3, 2024 FinanceFacts101 Investments

What is Absolute Return? Absolute return, a crucial concept in finance and investment, signifies the yield obtained by an asset or portfolio over a specific time frame, unrelated to any benchmark or other comparative measures. This type of return focuses on the gains or losses solely earned by the investment

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