Yield To Worst - YTW

Yield To Worst - YTW
The lowest potential yield that can be received on a bond without the issuer actually defaulting. The yield to worst is calculated by making worst-case scenario assumptions on the issue by calculating the returns that would be received if provisions, including prepayment, call or sinking fund, are used by the issuer. This metric is used to evaluate the worst-case scenario for yield to help investors manage risks and ensure that specific income requirements will still be met even in the worst scenarios.

Yield to worst is calculated on all possible call dates. It is assumed that prepayment occurs if the bond has call or put provisions and the issuer can offer a lower coupon rate based on current market rates. If market rates are higher than the current yield of a bond, the yield to worst calculation will assume no prepayments are made, and yield to worst will equal the yield to maturity. The assumption is made that prevailing rates are static when making the calculation. The yield to worst will be the lowest of yield to maturity or yield to call (if the bond has prepayment provisions); yield to worst may be the same as yield to maturity but never higher.

Investment dictionary. . 2012.

Look at other dictionaries:

  • Yield to worst — The bond yield computed by using the lower of either the yield to maturity or the yield to call on every possible call date. The New York Times Financial Glossary …   Financial and business terms

  • yield to worst — The bond yield computed by using the lower of either the yield to maturity or the yield to call on every possible call date. Bloomberg Financial Dictionary …   Financial and business terms

  • Yield to maturity — The Yield to maturity (YTM) or redemption yield is the yield promised to the bondholder on the assumption that the bond or other fixed interest security such as gilts will be held to maturity, that all coupon and principal payments will be made… …   Wikipedia

  • Canada's Worst Driver 5 — Format Reality television Developed by Proper Television Presented by Andrew Younghusband Narrated by Andrew Younghusband …   Wikipedia

  • Kündbare Anleihe — Eine kündbare Anleihe ist ein festverzinsliches Wertpapier, bei dem entweder dem Emittenten oder dem Gläubiger das Recht zur Kündigung eingeräumt wird. Inhaltsverzeichnis 1 Emittentenkündigungsrecht 1.1 Beschreibung 1.2 Kündigungsentscheidung …   Deutsch Wikipedia

  • Bond (finance) — In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) to use and/or to repay the principal at a later date, termed maturity.… …   Wikipedia

  • Swiss Bond Index — Struktur der SBI® Familie. Stand: Februar 2007. Der Swiss Bond Index (Abkürzung: SBI) ist der bekannteste Obligationen Index der Schweiz. Er wird von der SIX Swiss Exchange berechnet und publiziert. Der SBI widerspiegelt die Preisentwicklung der… …   Deutsch Wikipedia

  • Наименьшая доходность — доходность облигации, при расчете которой используется меньшая из доходностей к погашению или доходностей до срока выкупа на каждую возможную дату. По английски: Yield to worst См. также: Доходность облигаций Финансовый словарь Финам …   Финансовый словарь

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • Info-gap decision theory — is a non probabilistic decision theory that seeks to optimize robustness to failure – or opportuneness for windfall – under severe uncertainty,[1][2] in particular applying sensitivity analysis of the stability radius type[3] to perturbations in… …   Wikipedia

  • football — /foot bawl /, n. 1. a game in which two opposing teams of 11 players each defend goals at opposite ends of a field having goal posts at each end, with points being scored chiefly by carrying the ball across the opponent s goal line and by place… …   Universalium

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.