Glossary

 Explanation
30/360A day count convention used to calculate the accrued interest on bonds. 30 days are assumed to be in every calendar month and 360 days for every calendar year.
Accrued Interest The coupon income based on an investor nominal holding and based on the number of days the bond is held.
Actual/Actual (Act/Act)A day count convention used to calculate the accrued interest on bonds. The actual number of days between last coupon date and settlement date is divided by the actual number of days between the last coupon date and the next coupon date.
Actual/365 (Act/365)A day count convention used to calculate the accrued interest on bonds. The actual number of days between last coupon date and settlement date is divided by 365 days. It's 360 days for Act/360.
AllocationThe nominal amount an investor gets allocated as part of the investor’s subscription for the Eurobond in the primary market/auction.
Amount IssuedThe total nominal amount an issuer borrows from capital market participants and promises to repay at the maturity date.
Amount OutstandingThe total nominal amount that is currently in the market during the life of a bond.
BookrunnerA bank/adviser helping to place the Eurobond to investors.
Bookrunner & Dealer (“B&D”)A bookrunner who is in charge of compiling, organising and allocation the final order book.
Bullet BondsThe most basic form of a fixed coupon paying Eurobond with a fixed maturity date.
Call PriceThe price at which the issuer can buy back a callable bond.
Call ScheduleAn overview of call dates when the issuer can buy back a callable bond.
Callable BondA bond with an embedded option allowing the investor to buy back the bond from the holder at a (series of) set date(s) and price(s). 
Cash ConsiderationThe total of the principal and the total accrued interest (based on the nominal amount).
Clean PriceA quoted price of a Eurobond excluding the accrued interest component
Convertible BondA bond with an embedded option allowing the issuer to convert the bond to equity.
Coupon FrequencyHow often a coupon is paid: monthly, quarterly, semi-annually or yearly.
Coupon rateThe interest rate an investor receives that corresponds with the underlying bond.
Day CountThe number of days per month or year.
Day Count ConventionThe assumption we make how many days there are in a month and year.
Delivery vs Payment (“DVP”)a settlement instruction to deliver the bond on the settlement date on once the matching cash payment has been received.
Diaspora bondA bond issued where the issuer targets individuals of a its country who are not domiciled in that country anymore. 
Dirty PriceThe price of a Eurobond including the accrued interest component. Usually not the quoted price as it’s not a round number and may result in confusion.
Discounted PriceClean price less than 100% of the value of the bond.
Face ValueThe same a nominal amount.
Fractional BondA nominal trading size below the minimum nominal investment set for the Eurobond at issuance.
Free of Payment (“FOP”)A settlement instruction where the Eurobond is exchanged without a matching cash payment.  A cash payment may be effected separately or a type of instruction for transfer within the same company/fund.
Free-for-Trade (“FFT”)The initial period after allocations are out and the issuance of the Eurobond is completed. 
Initial Price Target (“IPT”)The yield indication provides by the bookrunners during the issuance, but before completion, of the issuance of a Eurobond.
ISINInternational Securities Identification Number. A unique identification number for each Eurobond.
IssuanceThe process of launching a new Eurobond
Issue PriceThe price a Eurobond is introduced at in the market.
Maturity DateThe expiry date of a bond when the investor gets paid the last coupon and receives back the principal invested.
Minimum amountThe minimum amount needed per Eurobond. Minimum amounts differs per Eurobonds and are set at issuance.
Minimum IncrementMinimum increment per bond. Can vary from $1 to $10,000 in most cases.
Nominal AmountThe amount used to calculate coupon income from.
Par PriceA clean price equal to 100% of the value of the bond.
Premium PriceClean price higher than 100% of the value of the bond.
Primary MarketLike an auction, the initial marketplace where Eurobond issuance is announced at.
Principal AmountThe nominal amount multiplied by the clean price.
Puttable BondA bond with an embedded option allowing the holder to sell back the bond to the issuer at a (series of) set date(s) and price(s). 
RankingThe priority of repayment of the principal in case of issuer’s default.
Receive vs Payment (“RVP”)A settlement instruction to receive the bond on the settlement date on once the matching cash payment has been received.
Reoffer PriceThe price the bookrunners offer a newly issued Eurobond at after they purchased the entire Eurobond at issue price.
RoadshowThe physical meetings with international investors organised by the bookrunners.
Secondary MarketThe open market after Eurobonds are issued and become Free-for-Trade.
Settlement DateThe date on which the bought or sold Eurobond exchanges hands.
Sinkable Bonda bond that starts paying back part of the principal according to a repayment schedule and rate prior to its maturity date.
SyndicateA group of bank and other advisers for Eurobond issuance
TickerA shorter version of a bond’s description detailing in most cases an abbreviated issue name, coupon rate and maturity date.
Trade DateThe date a Eurobond is purchased or sold.
Value DateThe same as settlement date.
Yield to Average Life (“YAL”)Rate of return an investor receives when holding a bond investment over the average maturity of the bond.
Yield to Call (“YTC”) Rate of return an investor receives when holding a bond investment until it’s call date.
Yield To Maturity (“YTM”)Rate of return an investor receives when holding a bond investment until it’s maturity date.
Yield to Put (“YTP”)Rate of return an investor receives when holding a bond investment until it’s put date.
Yield to Worst (“YTW”)The lowest rate of return an investor receives when holding a bond investment either until it’s maturity date, put/call date or average life.
Yield to Worst (“YTW”)The lowest rate of return an investor receives when holding a bond investment either until it’s maturity date, put/call date or average life.