Reference Data Glossary
This glossary includes definitions of all terms found anywhere in Moment’s reference data including fields, available values, and general terms. Each definition includes context, caveats and specifications to know, and usage guidance. Ctrl+F or Command+F to search for a specific term. Updated regularly by Moment's team as fields are being improved or added.
| Term | Definition |
|---|---|
| Agency | Definition: An agency is a type of security issued by a United States government-sponsored enterprise or federal agency, which are federally chartered corporations that are publicly owned by stockholders. Agencies sometimes offer slightly higher yields than US treasuries and therefore have higher risk than treasuries. Types of Agencies: Government-sponsored enterprise (GSE) issuers include Fannie Mae (Federal National Mortgage Association), Freddie Mac (Federal Home Loan Mortgage Corporation), Federal Home Loan Bank, and Federal Farm Credit Bank. Bonds issued by GSEs are not backed by the government’s “full faith and credit” guarantee because GSEs are owned by shareholders and are not part of the federal government. Federal agencies, such as the Government National Mortgage Association (Ginnie Mae) are part of the federal government and are therefore backed by the “full faith and credit” of the US government. Note however, that Ginnie Mae does not issue bonds directly — it insures or guarantees mortgage-backed securities originated by other lenders. Furthermore, not all agencies have government backing; for example, Tennessee Valley Authority (TVA) bonds are backed by revenues generated by the agency’s projects, not the US government. Features & Benefits: Yields: Agencies typically offer slightly higher yields than US treasuries of the same maturity as a result of not having the unconditional backing of the US government. Credit Quality: Agencies are typically considered to be of high credit quality. Structure: Agencies may include zero-coupon notes (short-term debts issued at a discount) and non-callable bonds with “step-up” coupons rates (the coupon increases at regular intervals while the bond is outstanding). Liquidity: There is a relatively active secondary market for many agencies. Risks: Some agencies have call features and are therefore susceptible to call risk. Like all bonds, they are susceptible to interest rate risk. While agencies have relatively low credit risk, there is still some default risk. Agencies face moderate inflation risk. Where is it found in Moment’s Reference Data? Moment offers agencies as an asset class in the Reference Data API endpoints. Agency is an available value of the field type. |
| Accrued Interest | Definition: Accrued interest is the interest that has accumulated on a bond between the last interest payment and the present date. It is a value that has not yet been paid to the bondholder. Why is it important? Bonds can be bought and sold between interest payment dates, but only the holder of the bond at the time of a coupon payment is entitled to the proceeds of that payment. When a bond is sold, the seller must receive the interest that has accrued up to the sale date. The buyer must therefore pay the seller the bond's price plus the accrued interest, which the buyer will recoup when the next interest payment is received. Accrued interest therefore ensures that the bond seller receives the interest earned for the period they held the bond, even if they sell it before the interest payment date. How is it calculated? Accrued interest is calculated based on the number of days that have elapsed since the last payment. Accrued interest is not incorporated into the clean price. Rather, accrued interest is an additional amount that the buyer must pay the seller when purchasing a bond. The accrued interest remains constant throughout the day and is provided on a per-bond basis. Accrued interest is included in the dirty price. See “How Bond Pricing Works” under “Understanding Pricing” for a deep dive and walkthrough into accrued interest calculation). Where is it found in Moment’s Reference Data? Moment provides accrued_interest as a field in each of Moment's Reference Data API endpoints. API users should pull accrued interest values daily and show them to users as part of the trade execution workflow. The accrued interest can also be used to calculate the total dollar amount of a trade (see the “How Bond Pricing Works” guide). Moment also provides the accrued interest for every execution that occurs through Moment’s platform. This allows API users to calculate the total dollar amount of every executed trade. |
| Bank Qualified | Definition: A bank qualified bond is a type of municipal bond specifically designated for purchase by commercial banks and offers them specific tax benefits because they allow banks to deduct interest costs of carrying the bond. Context and why it is important: Bank qualified bonds must meet certain criteria allowing banks to deduct the interest costs of carrying the bond. For example, they must be issued by a small issuer who expects to issue no more than $10 million in bonds during a calendar year. Banks can also deduct 80% of the interest expense they incur to buy and carry these bonds. This tax benefit makes bank qualified bonds more attractive to banks compared to regular municipal bonds. BQ bonds are typically issued by smaller municipalities and are intended to encourage banks to invest in local government projects. Due to the issuance cap, there's a limited supply of bank qualified bonds, which might restrict investment opportunities for larger banks or financial institutions. Knowing whether a bond is bank-qualified is important for investors because they often carry lower interest rates, offer tax benefits, and may experience higher liquidity. Where is it found in Moment’s Reference Data? The bank_qualified field is a boolean that indicates whether the bond is bank qualified or not. It can be found in Moment's Reference Data API endpoints. |
| Bond Warrant | Definition: A bond warrant is a financial instrument that can be attached to bonds, giving the holder the right, but not the obligation, to purchase a certain number of shares of the issuer's stock at a specified price (the strike price) before the warrant expires. Bond warrants are similar to stock options, but they are issued by the bond issuer, not the stock issuer. Context and why it is important: Bond warrants can provide an additional layer of potential profit for bond investors, but also add complexity and risk. They can make bond issues more attractive and provide strategic options for investors, but also require a thorough understanding of their terms and implications. Where is it found in Moment’s Reference Data? The bond_warrant field is a boolean that indicates whether the bond has a warrant or not. It can be found in Moment's Reference Data API endpoints. |
| Callable | Definition: A callable bond is a type of bond that allows the issuer the right, but not the obligation, to redeem the bond before its maturity date, i.e. to pay off the bond's principal early, usually at a set price (the call price) which is often above the bond's face value. Context and why it is important: A bond is typically called when interest rates fall, which allows the issuer to refinance its debt at a lower cost. Treasury bonds and notes are generally not callable, though there may be exceptions. Most callable bonds are municipal bonds. Corporations may also issue callable bonds. Types of calls: There are various types of call provisions and features. The three main types of calls are optional redemption, sinking fund redemption, and extraordinary redemption. Optional redemption allows the issuer to call the bond, repay the principal, and cease interest payments after a set period. For instance, a 10-year optional redemption bond might be callable beginning three years after it’s issued. A sinking-fund redemption bond is a callable bond that must be redeemed in portions over a fixed schedule. In other words, its issuer returns a specific amount of the principal to the bondholder at certain intervals, lowering the total amount it must repay at maturity (see “Sinking Fund Provision”). Extraordinary redemption bonds are allowed to be called by their issuers only if certain events occur. Most commonly, these bonds can be redeemed early if the project they were issued to finance is damaged or cancelled. Where is it found in Moment’s Reference Data? The flag for the callable field is a boolean that indicates whether the bond is callable or not. Called is an available value under the field status which designates whether the bond has been called or not. See “Call Type” for more information on how Moment designates callable bonds. It can be found in Moment's Reference Data API endpoints. |
| Called | Definition: A bond has been called when it has been redeemed before its maturity date. See the “Callable” definition for more information. Where is it found in Moment’s Reference Data? Called is an available value under the field status which designates whether the bond has been called or not. See “Call Type” for more information on how Moment designates callable bonds. It can be found in Moment's Reference Data API endpoints. |
| Call Type | Definition: The call type of a bond refers to one of a variety of specific circumstances under which a callable bond may be called. Context and why it is important: The call type informs investors of what types of call provision a callable bond is susceptible to. There are varying levels of risk, return, and pricing differences between bonds with different call types dependent on the likelihood that the bond gets called, as well as the circumstances under which they are called. Call types: (as delineated within Moment’s reference data): An ordinary or standard call type is the most common call type, which grants the issuer the ability to redeem the bond before its maturity date at a specified call price after a certain date — these types of calls fall under optional redemption (see “Callable”). A make-whole provision allows an issuer to redeem the bond before maturity at a price that is usually calculated based on the present value of future coupon payments and the redemption value, discounted at a specified rate — this type of call falls under optional redemption. A regulatory call type gives the issuer the right to redeem the bond before its maturity due to changes in regulatory or tax laws that adversely affect the bond or its issuer and falls under the category of an extraordinary exemption (see “Callable”). A special call allows the issuer to call the bond before its maturity under specific circumstances outlined in the bond's indenture — usually events or conditions that are outside the typical operations of the issuer, and falls under the category of an extraordinary redemption. Where is it found in Moment’s Reference Data? call_type is a field with the following available values: ordinary, make_whole, regulatory, and special. These values will only appear if the bond is callable. It can be found in Moment's Reference Data API endpoints. |
| Call Schedule | Definition: A bond call schedule is a feature included in the terms of callable bonds that specifies the dates and prices at which the issuer can choose to redeem the bond before its maturity. The call schedule includes the call date (the specific dates on which the issuer can exercise the call option), and typically lists multiple dates over the bond's life. It also includes the call price, which is the price the issuer must pay to redeem the bond early, often at a premium over the bond's face value, especially in the earlier years. The call price often decreases over time, approaching the bond's face value as it nears maturity. Context and why it is important: An issuer may decide to call a bond when interest rates have fallen to reissue new bonds at a lower rate. The call schedule gives them the flexibility to make this decision at predetermined intervals. Knowing the call schedule is important for investors to assess risk, as it affects their potential investment returns. If a bond is called early, investors will receive the principal back sooner than expected, possibly at a time when reinvesting that money yields a lower return. Furthermore, the presence of a call option generally means that callable bonds are priced differently from non-callable bonds. The possibility of the bonds being called (especially during times of falling interest rates) therefore influences their market value. An example of a call schedule is: suppose a 10-year callable bond is issued with a call schedule starting five years after issuance. The schedule might allow the issuer to call the bond at 105% of face value in year 5, 104% in year 6, and so on, decreasing each year until the bond can be called at its face value in the last year before maturity. Where is it found in Moment’s Reference Data? call_schedule is a field that is an array with call_date and call_price as available values. This will only be shown if the bond is callable. It can be found in Moment's Reference Data API in the "Retrieve reference data for a single security" endpoint. |
| Certificate of Deposit (CD) | Definition: A Certificate of Deposit (CD) is a fixed income investment / time deposit sold by banks, thrift institutions, and credit unions in the United States. CDs generally pay a set rate of interest that is generally higher than a regular savings account over a fixed period of time. Types of CDs: There are bank CDs and brokered CDs. Bank CDs are often purchased directly from a bank and are a deposit product, where you begin earning interest immediately upon deposit. Brokered CDs are issued by banks for the customers of brokerage firms, and are typically purchased through a brokerage. Brokered CDs are usually issued in large denominations and the brokerage firm divides them into smaller denominations for resale to its customers. Investors do not begin earning interest until the settlement date of the trade for brokered CDs. Both types of CDs are FDIC-insured. Features & Benefits: Flexibility: CDs come in a wide range of maturities, from 3 months to 20 years, giving investors options between high degrees of liquidity. Like other fixed income instruments, CDs with longer maturities have higher yields. Structure: CDs may be callable, as well as call-protected. Brokered CDs have a variety of coupon payment frequencies, as well as the possibility for step-up coupon schedules. Liquidity: Bank CDs have less of a secondary market than brokered CDs that are sold prior to maturity. Risks: Some CDs are callable and are therefore susceptible to call risk. Like all bonds, CDs are susceptible to interest rate risk. CDs have lower credit risk as they are covered by FDIC insurance. CDs sold prior to maturity are subject to a mark-down, making them susceptible to substantial gains or losses due to factors such as interest rate changes. Some CDs have step-up coupon schedules, which may put holders at risk of the step-up rate being below future prevailing market interest rates. Note: FDIC insurance only covers the principal amount of the CD and any accrued interest — in instances where CDs are purchased on the secondary market at a premium, this premium is ineligible for FDIC insurance. Where is it found in Moment’s Reference Data? Moment offers CDs as an asset class in the reference data. CD is an available value of the field type. |
| Clean Prices | Definition: The clean price of a bond is the price that does not include accrued interest payments and is the price typically quoted as the market price. The opposite of clean prices are dirty prices, which does include accrued interest payments. Context: When bonds are traded, their market price is often quoted as a percentage of their par value — this is called percentage of par pricing, and it’s what most market participants mean when they refer to a bond’s “price”. For example, if a bond with a $1,000 par value is trading at a price of 95, this means it's trading at 95% of its par value, or $950. Conversely, if it's trading at 105, it's trading at $1,050. Quoting bonds using the percentage of their par value makes it easy to compare bonds with different par values. Bonds that are trading at a price above $100 are said to be trading at a “premium” to par, and bonds that are trading at a price below $100 are said to be trading at a “discount” to par. By default, bonds are quoted using “clean prices”, meaning prices that do not include accrued interest. Note: Immediately following the coupon payment, the bond's price resets to the clean price whereby the dirty price and clean price are equal. Shortly afterward, the bond begins accruing interest again until the next coupon payment. Where is it found in Moment’s Reference Data? In Moment’s Data and Orders APIs, the price field refers to the clean, percentage of par price. This price shows up in the Get Marks Endpoint, Get Price Chart Endpoint, Get Top of Order Book Endpoint, as well as nearly all the trading-related endpoints and messages. All orders are submitted with a clean price. |
| Close Price | Definition: The close price refers to the “end of day price” or the price of the last transaction of a security before the market officially closes for normal trading (4pm ET). This value is shown as a percentage of par value. Why this is important: Knowing the close price is important for understanding how the value of the bond changes over time, as with yield. Where is it found in Moment’s Reference Data? The close_price field exists in all of Moment’s reference data endpoints. |
| Close YTW | Definition: The close YTW refers to the Yield to Worst of the last transaction of a security before the market officially closes for normal trading. See “Yield to Worst” for more context. Why this is important: Knowing the close YTW is important for understanding how the value of the bond changes over time, as with price. Where is it found in Moment’s Reference Data? The close_YTW field exists in all of Moment’s reference data endpoints. |
| Close Price As Of | Definition: The “close price as of” is the date on which the close price and yield were recorded in RFC-3339 format (a standard for time strings). Where is it found in Moment’s Reference Data? The close_price_asof field exists in all of Moment’s reference data endpoints. |
| Convertible Bond | Definition: A convertible bond is a bond that gives the investor a right or obligation to exchange the bond for a predetermined number of shares in the issuing company at certain times of a bond’s lifetime, therefore possessing some features of both debt and equity. Things to know: Similar to regular bonds, they have maturity dates and pay interest to investors. Additionally, if investors choose not to convert their bonds to equity, they will receive the bond’s face value at maturity. However, if investors choose to convert the bonds to shares, the bond will lose all debt features and possess only equity features.Convertible bonds are typically issued by companies with low credit ratings and high growth potential as a way to attract investors with growth potential through future capital appreciation of the stock price. Types of convertible bonds: Vanilla convertible bonds are the most common type and provide investors the right to convert their bonds to shares. Mandatory convertibles provide investors with the obligation to convert their bonds to shares at maturity. Reverse convertibles give the issuer the option to either buy back the bond in cash or convert it to equity at a predetermined conversion price and rate at the maturity date. Where is it found in Moment’s Reference Data? Moment currently provides convertible as a boolean flag field used to identify whether a bond is convertible or not. It will only be used to flag corporate bonds, and will be null for other fields. There is also an available value converted within the status field, which indicates whether the bond has been converted or not. It can be found in Moment's Reference Data API endpoints. |
| Corporate Actions | Definition: A corporate action is any action taken by a company – generally enacted by its board of directors – that has a material impact on the company and its shareholders. Corporate actions involve either changing a company’s name/brand, mergers, acquisitions, spinoffs, or issuing dividends. Categories: Mandatory corporate actions occur when shareholders have no choice regarding participation — stock splits, acquisitions, and company name changes are examples. Mandatory with options are when the board of directors carries out an action but provide shareholders with a choice of options. Voluntary corporate actions allow each shareholder to decide if they will participate in the action or not - tender offers, optional dividends, and rights issues are examples. How this affects bondholders: When companies borrow money, bondholders may see a decline in the value of their investment as companies’ perceived risk increases. If a company announces a stock buyback, it can cut the company’s cash and reduce the attractiveness of the balance sheet. If a company increases its dividend, bonds face pressure as the company reduces cash on hand. If a company increases its credit line, it could affect bondholders negatively because it could be a sign that the company is increasing its borrowing. Where is it found in Moment’s Reference Data? Moment flags certain corporate actions as available values for the status field in the reference data endpoints. For example, a bond may be tendered, or offered for repurchase by the issuing company, as part of a corporate action. The available values tendered and repurchased are examples of flags in the reference data that can be used to identify whether a bond has been tendered or repurchased. It will only be used to flag corporate bonds, and will be null for other fields. |
| Corporate Bond | Definition: A corporate bond is issued by a corporation in order to raise financing for a variety of reasons including ongoing operations, purchasing new equipment, building new facilities, M&A, or expanding the business. The issuing company is responsible for making interest payments and repaying the principal at maturity. Types of corporate bonds: Corporate bonds have varying levels of risk and reward levels depending on the issuing company’s creditworthiness. For example, secured corporate debt has seniority when receiving payment compared to unsecured corporate debt. Secured corporate bonds are within a ranking structure used by issuers to prioritize debt payout. Some corporate bonds are guaranteed, meaning that in the event of default, a third party will take over and make good on the original terms of the bond. Some corporate bonds are convertible, meaning they can be converted into common stock shares (see “Convertible Bond”). Features & Benefits: Yield: Corporate bonds often return higher yields than other fixed income securities with similar maturities. Diversification: The wide variety of corporate bonds available make it possible to diversify across industry, issuer, maturity, credit ratings, and interest payment schedules. Liquidity: Many corporate bonds are actively traded in the secondary market. Risks: With higher yields come higher risks — corporate bonds generally face credit risk, as they tend to have lower credit ratings than US government bonds. Furthermore, if an issuing company is unable to make interest or principal payments, corporates are susceptible to default risk. Within bonds from a single issuer, junior debt faces higher risk than senior debt, as they are lower in priority for payment in the event of bankruptcy. Where is it found in Moment’s Reference Data? Moment offers corporate bonds as an asset class in the reference data. Corporate is an available value of the field type. |
| Country Issue | Definition: The country issue in Moment’s reference data refers to the country where the bond is issued, specifically the 2-alpha country code (e.g., US, CA) Where is it found in Moment’s Reference Data? Moment provides country_issue as a field in the reference data endpoints. |
| Country Domicile | Definition: The country domicile in Moment’s reference data refers to the country where the bond is domiciled (or where it legally resides), specifically the 2-alpha country code (e.g., US, CA). An example of the distinction between a country of issue and a country of domicile is if a Brazilian bond is issued in the US (country of issue), for a corporation in Brazil (country of domicile). Where is it found in Moment’s Reference Data? Moment provides country_domicile as a field in the reference data endpoints. |
| Coupon | Definition: A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. The coupon rate is determined by adding the sum of all coupons paid per year, then dividing that total by the face value of the bond. Context and types of coupons: Knowing a bond’s coupon is important for knowing what the expected interest payment for a bond is. There are various kinds of coupons — see “Coupon Type” for more information. Where is it found in Moment’s Reference Data? Moment provides coupon as a field in the reference data endpoints. |
| Coupon Frequency | Definition: The coupon frequency is how often the coupon is paid to the bondholder. Types of coupon frequencies: There are various schedules on which coupons are paid. The most common types are annual which means the coupon is paid once each year. Semi-annual coupon payments are paid every six months. Quarterly are paid every three months. Monthly means the coupon is paid every month. And for zero-coupon bonds, there is no coupon payment throughout the bond’s lifetime, so the value of any discounts are realized at maturity. Where is it found in Moment’s Reference Data? Moment provides coupon_frequency as a field in the reference data endpoints, for which the available values are annual, semi-annual, quarterly, monthly, and zero for zero-coupon bonds. The next date on which a coupon is to be paid is found in the field next_coupon_date (see “Next Coupon Date”). |
| Coupon Type | Definition: There are various types of coupon payments and rates. Coupon Types (as delineated within Moment’s reference data): A fixed-rate coupon rate is a coupon rate that is a fixed percentage of the bond’s par value — it never changes and is typically found with vanilla bonds (the most commonly available bonds in the market). A floating coupon is pegged to some benchmark rate that frequently changes based off a benchmark, such as SOFR. Typically, the coupon payment is the benchmark rate plus a spread. A variable coupon changes over the life of the bond. Similar to a floating rate, but typically updates less frequently, such as once every coupon payment. A zero-coupon bond, such as T-bills and long-term zero-coupon bonds, are typically offered by government agencies and do not pay a coupon over their lifetime — instead, they are sold at a deep discount to their face value. Strips have a coupon rate that is stripped into separate principal and interest payments. Complex coupon rates are any that do not belong in any of the aforementioned categories. Where is it found in Moment’s Reference Data? Moment provides coupon_type as a field in the reference data endpoints, with the following as available values: fixed, floating, variable, zero, strip, and complex. |
| Currency | Definition: The currency that the bond is denominated in. In Moment’s reference data this is shown with the 3-alpha country code for currency (e.g., USD, CAD). For example, USD-denominated simply means that the bonds are issued in U.S. dollar terms, so investors don't have to convert to foreign currencies when you purchase them. Where is it found in Moment’s Reference Data? Moment provides currency as a field in the reference data endpoints. |
| CUSIP | Definition: A CUSIP (acronym for Committee on Uniform Security Identification Procedures) is a unique nine-digit identification number assigned to equity, debt, and other securities registered bonds in the United States and Canada. It is used to create a concrete distinction between securities that are traded on public markets. Context and how to use it: CUSIPs are used to help facilitate trades and settlements by providing a constant identifier to help distinguish the securities within a trade. Each trade and the corresponding CUSIP number are recorded to facilitate the tracking of actions and activities. The first six alphanumeric characters in the CUSIP are known as the base or CUSIP-6, which identifies the issuer. The seventh and eighth digits identify the type of security, and the ninth digit is a check digit that is automatically generated. Note: using CUSIP date requires separate license from CUSIP Global Services. Where is it found in Moment’s Reference Data? Moment provides the field cusip in the reference data endpoints. In order to retrieve data for a single security, the CUSIP can be an input for the endpoint.Note: Available to licensed users only. The Committee on Uniform Securities Identification Procedures (CUSIP) identifier for all stocks and registered bonds. CUSIPs are unique security identifiers managed by The CUSIP Service Bureau. |
| Dated Date | Definition: The dated date marks the beginning of the period for which interest starts accruing on the bond. This means that even though the bond might be issued or purchased at a later date, the interest calculation starts from the dated date. Context and how to use it: Dated date is important for calculating accrued interest, as well as calculating the bond's yield and price. Where is it found in Moment's Reference Data? Moment provides the field dated_date in the reference data endpoints. |
| Defaulted | Definition: A defaulted bond is a bond in which the issuer has failed to fulfill the contractual obligations associated with the bond agreement. This failure can relate to either the payment of interest, the repayment of the principal, or both. Context and how to use it: When an issuer defaults on a bond, it indicates financial distress and an inability to meet the debt obligations as promised to bondholders. Issuers can default on bonds by either missing payments by not paying them in a timely manner or failing to repay the principal amount (known as an actual default), which is the most common type of default. Default can also occur if the issuer breaches certain terms or covenants of the bond agreement (known as a technical default), even if they are still making payments. When a bond defaults, bondholders may lose a significant portion of their invested capital. In case of default, they might receive only a fraction of the bond's face value, or sometimes nothing at all. The process to recover funds may be a lengthy and costly one that requires legal action. The issuer’s credit rating is typically downgraded in the case of default, which will severely impact their ability to raise funds in the future. In some cases, assets of the issuer may be liquidated to repay bondholders, but this depends on the type of bond and the legal proceedings. Where is it found in Moment’s Reference Data? defaulted is an available value under the field status which designates if the bond has defaulted or not. It can be found in Moment's Reference Data API endpoints. |
| Day Count | Definition: Day count convention refers to the system used on debt securities, such as bonds or swaps, to calculate the amount of accrued interest or the present value when the next coupon payment is less than a full coupon period away. Why is it important? There are multiple different ways to calculate day count. Each bond market and financial instrument has its own day-count convention, which varies depending on the type of instrument, whether the interest rate is fixed or floating, and the country of issuance. For example, bonds and notes issued by the U.S. Treasury earn interest calculated on an actual/actual basis. This means all days in a period carry equal value; it also means the length of coupon periods and the resultant payments vary. Among the most common conventions are 30/360, 30/365, actual/360, actual/365, and actual/actual. The following day counts are provided by Moment: A/360: calculates the daily interest using a 360-day year and then multiplies that by the actual number of days in each time period. Floating-rate notes typically use this convention. A/365: calculates the daily interest using a 365-day year and then multiplies that by the actual number of days in each time period. This convention can be used while pricing treasuries. 30/360: calculates the daily interest using a 360-day year and then multiplies that by 30 (standardized month). Corporate bonds typically use this convention. A/A: calculates the daily interest using the actual number of days in the year and then multiplies that by the actual number of days in each time period. Treasuries use this convention. 30E/360: number of days equals to the actual number of days (for February). If the start date or the end date of the period is the 31st of a month, that date is set to the 30th. The number of days in a year is 360. This convention is most commonly used for eurobonds. B/252: calculates the daily interest using a 252-business-day year and then multiplies that by the actual number of days in each time period. This convention is known as the Brazilian Day Count Accrual Convention and is based on the Brazilian business calendar. A/364: calculates the daily interest using a 364-day year and then multiplies that by the actual number of days in each time period. This convention is a special case of Actual/Actual (ISMA) when a coupon period contains 91 or 182 days and only applies for some short-term instruments. Where is it found in Moment’s Reference Data? day_count is an available field in Moment’s reference data endpoints. The following are available values: A/360, A/365, 30/360, 30/365, A/A, 30E/360, B/252, and A/364. |
| Description | Definition: A bond’s description provides an overview of a bond's characteristics and terms. It provides essential information that investors need to evaluate and understand the bond as an investment option such as issuer, principal, coupon, and maturity date. Where is it found in Moment’s Reference Data? description is an available field in Moment’s reference data endpoints, which has the full text description of the bond following the format: [issuer] [coupon]%, [maturity_date: MM/DD/YYYY] e.g. AAA UNITED STATES GOVERNMENT MONEY MARKET ACCOUNT INC 2.6%, 11/30/2022. Additionally, description_short is an available field in Moment’s reference data endpoints, which has the short text description of the bond following the format: [abbreviated issuer] [coupon]% [maturity_date: MM/DD/YYYY] e.g. AUSGM 2.6% 11/30/2022. |
| Dirty Prices | Definition: The dirty price of a bond is a bond pricing quote which refers to the cost of a bond that includes accrued interest based on the coupon rate. Bond price quotes between coupon payment dates reflect the accrued interest up to the day of the quote. Dirty prices can be used to calculate total trade size. Note: the dirty price is the opposite of a clean price. Context and how to use it: In the bond market, the term “price” typically refers to the clean price. The clean price is quoted as a percentage of par and does not include accrued interest. To make it easier to calculate total trade sizes, Moment also provides “dirty prices”, which do include accrued interest. Calculating the total trade size with a dirty price is even easier than with a clean price: Trade Size = (# of Bonds) x (Par Value) x (Dirty Price) / 100. In other words, the dirty price allows you to ignore the concept of accrued interest when calculating a total trade size. Where is it found in Moment’s Reference Data? Moment currently provides dirty prices in addition to clean prices in the Get Marks Endpoint using the field name dirty_price. The field name price refers to the clean price. |
| Duration | Definition: The duration of a bond represents how long it will take, on average, to receive the returns of investment, including the regular interest payments on the bond as well as the final lump sum payment. Duration measures the relationship between price and yield — specifically, the derivative of price with respect to yield. Context and why it is important: Duration is important because it rolls up several bond characteristics (such as maturity date and coupon payments) into a single number that help investors understand how sensitive a bond is to changes in interest rates. The longer the duration, the more the bond’s price will go up or down with changes in interest rates. Duration can be used to gauge a bond’s risk as well — bonds with longer duration may experience more price fluctuation compared with bonds with shorter duration. Exactly how much the price and yield differ in duration is determined by the term of the bond. One way to think about duration is as the weighted average of time to all cash flows. For example, for a 10 year bond, the typical duration is 7 years because much of the cash flow is received earlier, and there is one big cash flow at the end of the bond’s life — thus, duration is typically less than the time to maturity. Durations of bonds also change over time. Where is it found in Moment’s Reference Data? Moment currently provides the field duration in the reference data endpoints. |
| Funged | Definition: A bond is funged when two or more bond issues are combined or consolidated into a single, larger issue. The term is a shorthand for "fungibility," which in finance typically refers to the interchangeability of assets. After being funged, the bonds share the same terms, such as interest rates, maturity dates, and covenants. Context and how to use it: Combining smaller issues into one larger issue can increase the liquidity of the bonds. A larger, more standardized issue is often more attractive to investors and can be traded more easily in the market. When bond issues are funged, it can also lead to more consistent pricing across the consolidated issue since all the bonds now have the same terms and risk profile. Investors should be aware of the terms of the funged bonds, especially if they held bonds from one of the original issues, as the terms might have changed. While funging generally increases liquidity, investors should still assess the risk profile of the new, larger issue, which might be different from the original smaller issues. Where is it found in Moment’s Reference Data? funged is an available value under the field status which designates if the bond is funged or not. It can be found in Moment's Reference Data API endpoints. |
| General Obligation Bonds | Definition: General obligation bonds, commonly referred to as GO bonds, are a type of municipal bond. They are issued by states, cities, counties, or other municipal entities to fund a variety of public projects, such as building schools, improving infrastructure, or other community-focused initiatives. Context and why it is important: GO bonds are backed by the full faith and credit of the issuing municipality. This means that the issuer pledges its taxing power to pay bondholders, using tax revenues to service the debt (interest and principal payments). Unlike revenue bonds, which are repaid from specific revenue sources (like tolls from a bridge or rent from a facility), GO bonds are not tied to any particular revenue-generating project. As a result, GO bonds are generally considered to be safer investments than other types of municipals. Like other municipal bonds, GO bonds often provide tax benefits, such as exemption from federal and sometimes state and local taxes. GO bonds might offer lower interest rates compared to other higher-risk bonds, which reflects their lower risk profile. The creditworthiness of GO bonds is closely tied to the economic and fiscal health of the issuing municipality. In times of economic distress or poor fiscal management, even GO bonds can face default risk. Where is it found in Moment’s Reference Data? general_obligation is an available value of the field municipal_type in the reference data endpoints. This is only specified for municipal bonds. |
| Insured | Definition: A bond is insured when a third-party insurance company guarantees the payment of principal and interest in case the issuer defaults. This added layer of protection is intended to reduce the risk for bondholders. Context and how to use it: Insurance effectively increases the bond's credit rating, often elevating it to an 'AAA' rating, reflecting reduced risk for investors. Because insured bonds are considered safer, they often yield less than uninsured bonds of the same type and maturity from the same issuer. The cost of insurance is typically paid by the issuer. Where is it found in Moment’s Reference Data? insured is an available value under the field status which designates if the bond is insured or not. It can be found in Moment's Reference Data API endpoints. |
| Issue Minimum Denomination | Definition: The issue minimum denomination of a bond refers to the smallest unit of the bond that can be purchased at its initial offering, as specified in the bond's issuing documents. This is distinct from the trading minimum, which is the smallest unit of the bond that can be traded on the secondary market after the initial issuance. Where is it found in Moment’s Reference Data? issue_minimum_denomination is a field which can be found in Moment’s reference data points. |
| ISIN | Definition: An ISIN (acronym for International Securities Identification Number) is a 12 digit alphanumeric that uniquely identifies a specific security. The organization that allocates ISINs in any particular country is the country's respective National Numbering Agency (NNA). Context and how to use it: ISINs are used for numerous reasons including clearing and settlement. The numbers ensure a consistent format so that holdings of institutional investors can be tracked consistently across markets worldwide. The format of an ISIN is the 2 digit country code, the 9 digit CUSIP, and a final character that acts as a check. Where is it found in Moment’s Reference Data? Moment provides the field isin in the reference data endpoints. In order to retrieve data for a single security, the ISIN (or CUSIP) can be an input for the endpoint. |
| Issue Size | Definition: The issue size of a bond is the total size amount of the bond in the issuing currency. Context and how to use it: Issue size reflects the number of bonds issued multiplied by the face value. For instance, suppose an entity issues two million bonds with a $100 face value. That means the issue size is $200 million dollars. Where is it found in Moment’s Reference Data? Moment provides the field issue_size in the reference data endpoints. |
| Issue Price | Definition: The issue price of a bond is the price at which the bond was originally issued as a percentage of par value. Context and how to use it: Issue price can be set at par, at a discount, or at a premium. A bond issued at its par value is typically $1,000 per bond for corporate bonds. Bonds can be issued at a price lower than its par value, at a discount. This often happens when the interest rate on the bond is lower than the prevailing market rates. Conversely, if a bond is issued at a price higher than its par value, it's issued at a premium. This typically occurs when the bond's interest rate is higher than current market rates. The issue price reflects the prevailing market conditions at the time of issuance, including interest rates and the issuer's creditworthiness. Where is it found in Moment’s Reference Data? Moment provides the field issue_price in the reference data endpoints. |
| Issue Date | Definition: The issue date is the day on which the bond is first issued. Where is it found in Moment’s Reference Data? Moment provides the field issue_date in the reference data endpoints. |
| Liquidated | Definition: A bond is liquidated when the issuer, typically a company or corporation, is closing down its operations and selling off its assets. This situation is usually associated with bankruptcy or insolvency proceedings. Context and why it is important: Liquidation of a bond issuer often occurs following bankruptcy and involves a process in which the issuer’s assets are sold off to raise funds. The proceeds from the asset sales are used to repay creditors, including bondholders, but there's a hierarchy for repayment. Typically, secured creditors are paid first, followed by unsecured creditors, which often include bondholders. Depending on the issuer's financial situation and the amount raised from asset sales, bondholders may receive only a portion of their investment back, or in some cases, nothing at all. Understanding the potential for issuer liquidation is a crucial part of assessing credit risk. Where is it found in Moment’s Reference Data? liquidated is an available value under the field status which designates if the bond’s issuer is liquidated or not. It can be found in Moment's Reference Data API endpoints. |
| Liquidity Score | Definition: The liquidity score is a proprietary analytic calculated by Moment that provides investors a sense of which bonds are liquid and highly tradable in both institutional volume and smaller retail sizes. The liquidity score is a star-based ranking system, provided out of 5 stars — 5 stars represents highest liquidity, while 1 star represents lowest liquidity. Inputs into the calculation for a bond’s liquidity score include various factors such as how many times it has been traded in small size, what percentage of quotes have a minimum size of 1, and others. Context and why it is important: Correspondents can use the liquidity scores of bonds to determine which bonds to include in their tradable universe for end users. End users can use the liquidity score to inform their decision-making as well. Understanding liquidity of bonds for retail investing is important because investors are likely to get better, more fair pricing, for bonds that have higher liquidity scores, as with more trading volume (more liquidity) prices shown are more likely to represent the true value of the bonds. When markets are illiquid, traders may find themselves stuck with bonds they can't sell (or can't sell without a significant price drop). Liquidity Scores are a derived pricing metric intended to provide users with an idea on the recent liquidity of a bond, allowing them to understand how easy it may be for them to enter or exit their positions today. See below on more information: 1. Aggregate Liquidity Score. This score is a composite measure that assesses the market liquidity of a security. It considers two factors: - The proportion of time a bid (buy price) and an offer (sell price) were present in the market over the past two weeks. - The average bid-offer spread at the top of the order book, which is the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (offer). A smaller spread indicates higher liquidity. - For example, for a bond to have a liquidity score of 5 stars, it must have a two-sided market at least 90% of the time and have an average bid-offer less than either 50 price bps or 10 yield bps. 2. Rating Categories. The liquidity score is presented in a 1 to 5 star rating system for three different investment sizes: Micro (≤$1K), Retail (≤$10K), and Institutional (any size). Each star rating corresponds to a range of time the bid and offer are present, as well as a range for the average bid-offer spread in basis points (bps) for bonds or yield basis points for other fixed-income securities. 3. Retail Relevance. For your customers, the best liquidity score may be the micro liquidity score (which is based on small trade sizes) if the average trade size is expected to be $1K or less. The star ratings are as follows: 1. 1 Star: Less than 10% of the time there is both a bid and offer, or the spread is greater than 100 bps / 20 yield bps. 2. 2 Stars: More than 10% of the time there is both a bid and offer, and the spread is 200 bps or less / 40 yield bps or less. 3. 3 Stars: More than 50% of the time there is both a bid and offer, and the spread is 150 bps or less / 30 yield bps or less. 4. 4 Stars: More than 75% of the time there is both a bid and offer, and the spread is 100 bps or less / 20 yield bps or less. 5. 5 Stars: More than 90% of the time there is both a bid and offer, and the spread is 50 bps or less / 10 yield bps or less. The more stars a security has, the more liquid it is considered to be, meaning it's easier to trade without large price concessions. For customers, understanding these liquidity scores can help in assessing the risk and tradability of securities and also help filter the bonds to offer to end customers. See this page for a table view of the scores. Where is it found in Moment’s Reference Data? Moment provides liquidity scores through multiple fields in the reference data endpoints including liquidity_micro_buy, liquidity_micro_sell, liquidity_micro_aggregate, liquidity_retail_buy, liquidity_retail_sell, liquidity_retail_aggregate, liquidity_institutional_buy, liquidity_institutional_sell, and liquidity_institutional_aggregate. See below for more detailed descriptions. |
| Liquidity Micro Buy, Sell, and Aggregate | Definition: The Liquidity Micro Buy and Sell fields are proprietary analytics specific to Moment’s reference data. The Liquidity Micro Aggregate field reflects the depth of historical executable liquidity to buy or sell. Why is it important and how does it work? The liquidity score for micro sized trades is shown so that retail investors, or investors who are interested in buying in lot sizes less than or equal to 1,000 can know what is most liquid at that trading size. Many retail investors will likely fall into this category. Historically, fixed income is traded in much larger lot sizes, and there is no way for retail investors to know how liquid securities are. The Liquidity Micro Buy field represents a score (from 1-5 or null if the bond is not priced/tradable) reflecting the historical depth of executable liquidity to buy with minimum trading sizes less than or equal to 1,000. A higher score means that an order to buy will generally have faster execution. The Liquidity Micro Sell field represents a score (from 1-5 or null if the bond is not priced/tradable) reflecting the historical depth of executable liquidity to sell with minimum trading sizes less than or equal to 1,000. A higher score means that an order to sell will generally have faster execution. The Liquidity Micro Aggregate field represents a score (from 1-5 or null if the bond is not priced/tradable) reflecting the historical depth of executable liquidity to buy or sell with minimum trading sizes less than or equal to 1,000. A higher score means that an order to buy or sell will generally have faster execution. Where is it found in Moment’s Reference Data? liquidity_micro_buy, liquidity_micro_sell, and liquidity_micro_aggregate can be found in Moment’s reference data API endpoints. |
| Liquidity Retail Buy, Sell, and Aggregate | Definition: The Liquidity Retail Buy and Sell fields are proprietary analytics specific to Moment’s reference data. The Liquidity Retail Aggregate field reflects the depth of historical executable liquidity to buy or sell for minimum trading sizes less than or equal to 10,000. Why is it important and how does it work? The liquidity score for retail-sized trades is shown so that investors who are interested in buying in lot sizes less than or equal to 10,000 can know what is most liquid at that trading size. Many retail investors will likely fall into this category. Historically, fixed income is traded in much larger lot sizes, and there is no way for retail investors to know how liquid securities are. The Liquidity Retail Buy field represents a score (from 1-5 or null if the bond is not priced/tradable) reflecting the historical depth of executable liquidity to buy with minimum trading sizes less than or equal to 10,000. A higher score means that an order to buy will generally have faster execution. The Liquidity Retail Sell field represents a score (from 1-5 or null if the bond is not priced/tradable) reflecting the historical depth of executable liquidity to sell with minimum trading sizes less than or equal to 10,000. A higher score means that an order to sell will generally have faster execution. The Liquidity Retail Aggregate field represents a score (from 1-5 or null if the bond is not priced/tradable) reflecting the historical depth of executable liquidity to buy or sell with minimum trading sizes less than or equal to 10,000. A higher score means that an order to buy or sell will generally have faster execution. Where is it found in Moment’s Reference Data? liquidity_retail_buy, liquidity_retail_sell, and liquidity_retail_aggregate can be found in Moment’s reference data endpoints. |
| Liquidity Institutional Buy, Sell, and Aggregate | Definition: The Liquidity Institutional Buy and Sell fields are proprietary analytics specific to Moment’s reference data. The Liquidity Institutional Aggregate field reflects the depth of historical executable liquidity to buy or sell with no minimum trading sizes. Why is it important and how does it work? The liquidity score for institutional-sized trades (or no minimum trade sizes) are shown, as fixed income has historically been traded at much larger sizes (by institutional investors). The Liquidity Institutional Buy field represents a score (from 1-5 or null if the bond is not priced/tradable) reflecting the historical depth of executable liquidity to buy with no minimum trading sizes. A higher score means that an order to buy will generally have faster execution. The Liquidity Institutional Sell field represents a score (from 1-5 or null if the bond is not priced/tradable) reflecting the historical depth of executable liquidity to sell with no minimum trading sizes. A higher score means that an order to sell will generally have faster execution. The Liquidity Institutional Aggregate field represents a score (from 1-5 or null if the bond is not priced/tradable) reflecting the historical depth of executable liquidity to buy or sell with no minimum trading sizes. A higher score means that an order to buy or sell will generally have faster execution. Where is it found in Moment’s Reference Data? liquidity_institutional_buy, liquidity_institutional_sell, and liquidity_institutional_aggregate can be found in Moment’s reference data endpoints. |
| Make Whole Call Provision | Definition: A make-whole call provision is a type of call provision on a bond allowing the issuer to redeem the bond before maturity at a price that is usually calculated based on the present value of future coupon payments and the redemption value, discounted at a specified rate (often a government bond rate plus a spread). Context and why it is important: Make-whole calls are rarely exercised. When they are exercised, it is typically done when interest rates have decreased. This means the discount rate for the net present value of the bond is likely to be lower than the initial rate when the bond was offered, making make-whole calls slightly more expensive for the issuer, and therefore better for investors than standard call provisions. This also means all things being equal, bonds with a make-whole call provision will typically trade at a premium to those with standard call provisions, as investors pay less money for bonds with standard call provisions, which have higher call risk. Where is it found in Moment’s Reference Data? Moment provides make_whole as an available value within the field call_type in the reference data. This flag will only appear for bonds that are callable, and have a make-whole provision. |
| Matured | Definition: A matured bond is one that has reached its maturity date and the principal amount of the bond has been paid pack to the bondholder by the issuer. Context and how to use it: Regular coupon payments cease once the bond has matured. After maturity, the bond no longer has market value fluctuations because it no longer exists as an investment instrument. As a bond approaches its maturity, it becomes more liquid and its market price typically converges towards its face value. This is important for investors considering selling the bond before maturity. Where is it found in Moment’s Reference Data? matured is an available value under the field status which designates if the bond has matured or not. It can be found in Moment's Reference Data API endpoints. |
| Maturity Date | Definition: The maturity date is the date specified in the bond agreement when the principal amount of the bond is due to be paid back to the bondholder by the issuer. Context and how to use it: Regular coupon payments cease once the maturity date has passed. Knowing the maturity date of a bond is crucial for investment planning. Investors often align the maturity dates of bonds in their portfolio with their own financial goals or cash flow needs. Bonds with shorter maturities generally carry less risk, particularly interest rate risk, as compared to longer-term bonds. As a bond approaches its maturity, it becomes more liquid and its market price typically converges towards its face value. This is important to know for investors who are considering selling the bond before maturity. When a bond matures, investors face reinvestment risk, which is the risk that they may have to reinvest the principal at a lower rate of return if interest rates have fallen. Where is it found in Moment’s Reference Data? maturity_date is a the field which designates the maturity date of the bond. It can be found in Moment's Reference Data API endpoints. |
| Municipal Bond | Definition: A municipal bond is a type of fixed income security issued by states, cities, counties, and other governmental entities to finance public projects. These bonds are generally exempt from federal taxes, and often also from state and local taxes, especially if the investor lives in the state where the bond is issued. Types of municipal bonds: General obligation bonds (GO bonds) are backed by the full faith and credit of the issuing municipality. They are typically supported by the issuer's taxing power. This means the local government can raise taxes to ensure the bond is paid (see “General Obligation”). Revenue bonds are not backed by the issuer's taxing power but by the revenues from a specific project or source, such as highway tolls or lease fees (see “Revenue”). They are only as secure as the revenue-generating project they finance. Conduit bonds are issued by municipalities on behalf of private entities such as non-profit colleges or hospitals. These bonds are repaid from the funds generated by the projects they finance, not by the municipality. Features & Benefits: Yield: Generally, yields on municipal bonds are lower than those of corporate bonds. Liquidity: While the municipal bond market is sizable, it is not as liquid as the US Treasury or corporate bond markets. This is partly due to the vast number of issuers and the unique characteristics of each bond. Many municipal bonds are held by investors who intend to keep them until maturity, reducing the number available for trading. Tax Exemption: A primary feature of municipal bonds is their tax-exempt status. The interest income from most municipal bonds is exempt from federal income tax, and may also be exempt from state and local taxes. Risks: Municipal bonds have a lower default risk compared to corporate bonds. However, while they are generally considered to be a more stable investment, they still can face default risk. Like all fixed income securities, municipal bonds are subject to interest rate risk. Changes in tax laws or political shifts can affect the value and safety of municipal bonds, making them susceptible to political or legislative risk. Since munis often offer lower yields, there's a risk that inflation could erode the purchasing power of the interest payments. Finally, some municipal bonds are callable, making them susceptible to call risk. Where is it found in Moment’s Reference Data? Moment offers municipal bonds as an asset class in the reference data. Municipal is an available value of the field type. The field municipal_type indicates what type of revenue backing a municipal bond has (either general_obligation or revenue). The field municipal_state indicates which state or territory the issuing municipality is from. The municipal_taxable_federal field is a boolean indicating whether the municipal bond is subject to US federal taxes. Note that the bank_qualified field is also specific to municipal bonds. |
| Next Call Date | Definition: A bond’s next call date is the upcoming date on which the issuer of a callable bond has the option to redeem (call) the bond before its scheduled maturity date. Context and how to use it: Many callable bonds have a call schedule that outlines multiple potential call dates and the respective call prices for each date — the next call date is the most immediate of these dates at the time of viewing data on the bond (see “Call Schedule”). The next call date impacts the bond's yield. If a bond is called, the investor's yield might differ significantly from the yield-to-maturity. Where is it found in Moment’s Reference Data? next_call_date is a the field which designates the next call date of the bond. Unlike the maturity date of a bond, the next call date is a dynamic field. This will only have values for callable bonds. It can be found in Moment's Reference Data API endpoints. |
| Next Call Price | Definition: A bond’s next call price is the price at which a callable bond can be redeemed by the issuer on the next call date. Context and how to use it: It is typically set at the time that the bond is issued and is often outlined in the bond’s prospectus. Typically, the call price is set above the bond's face (or par) value, especially for earlier call dates. This premium compensates the bondholder for the bond being called away before its maturity. In many cases, the call price declines over time, approaching the bond's face value as it gets closer to the maturity date. The next call price affects the bond's yield. If the bond is called, the investor will receive the call price, which can be different from the yield they would have received had the bond not been called and held to maturity. Furthermore, the next call price can act as a sort of price ceiling for the bond in the secondary market. As the call date approaches, the bond’s market price is unlikely to rise much above the call price. Where is it found in Moment’s Reference Data? next_call_price is a the field which designates the next call price of the bond. It can be found in Moment's Reference Data API endpoints. |
| Next Coupon Date | Definition: A bond’s next coupon date is the upcoming date on which the issuer of the bond must make a coupon payment to the bondholder. Context and how to use it: Knowing the next coupon date is important for financial planning, yield calculation, pricing, reinvestment strategy, and tax planning. The next coupon date is also factored into bond valuation models and can help determine the present value of future cash flows. For callable bonds, the next coupon date can also be significant in assessing the likelihood of the bond being called. Issuers are more likely to call the bond around the coupon date, especially if the bond is callable at par and market interest rates have declined. Where is it found in Moment’s Reference Data? next_coupon_date is a the field which designates the next coupon date of the bond. This field is null for zero-coupon bonds. It can be found in Moment's Reference Data API endpoints. |
| Outstanding | Definition: A bond is outstanding if it has been issued and is currently in circulation or held by investors. These bonds represent an active debt obligation for the issuer until they mature or are redeemed. Context and how to use it: As long as a bond is outstanding, it represents an active debt obligation, meaning the issuer is obligated to make scheduled coupon payments and ultimately repay the principal at maturity. Thus, bonds that have been repaid, called, or otherwise retired are not considered outstanding. The amount of outstanding bonds is a measure of the issuer's debt load. It's crucial for assessing the issuer's financial health and creditworthiness Where is it found in Moment’s Reference Data? outstanding is an available value under the field status which designates if the bond is outstanding or not. It can be found in Moment's Reference Data API endpoints. |
| Ordinary Call Provision | Definition: An ordinary or standard call, often just referred to as a "call", is a provision that allows the issuer to redeem the bond before its maturity date at a specified call price after a certain date. It is considered considered an optional redemption (see “Callable”). This is the most common type of call provision. Where is it found in Moment’s Reference Data? Moment provides ordinary as an available value within the field call_type in the reference data endpoints. This flag will only appear for bonds that have a call provision. |
| Par Value | Definition: Par value, also known as face value or nominal value, is the amount that the issuer of the bond promises to pay back to the bondholder upon maturity. Context and why it is important: Par value is a critical component in fixed income because it determines the bond's maturity value and the interest payments. For instance, a bond with a par value of $1,000 and an annual coupon rate of 5% will pay $50 in interest per year ($1,000 x 5%). When the bond matures, the issuer will pay the holder of the bond $1,000. It’s important to remember that, no matter what price you buy a bond for, you will receive the par value when it matures; for example, if you pay $500 to buy a bond with a par value of $1,000, you will still receive $1,000 when the bond matures. Note: Most bonds have a par value of $1,000, including nearly all treasury and corporate bonds. However, many US municipal bonds have a par value of $5,000. Where is it found in Moment’s Reference Data? The par value of a bond can be retrieved through Moment’s reference data endpoints with the par_value field. |
| Perpetual Bond | Definition: A perpetual bond, also known as a "perpetuity," is a type of bond that does not have a maturity date, and essentially pays interest indefinitely. Context and why it is important: Understanding whether a bond is perpetual is crucial for investment planning. Perpetual bonds may not be suitable for investors who depend on the return of principal at maturity. Investors seeking a consistent income stream might find perpetual bonds attractive due to their indefinite interest payments. Perpetual bonds have a unique risk profile compared to traditional bonds, influencing an investor's decision based on their risk tolerance. Features & Benefits: Perpetual bonds do not have a maturity date, making them a continuous income stream. Usually the interest rate for perpetual bonds is fixed. Furthermore, the issuer does not have to repay the principal amount, which effectively makes the bond a source of perpetual debt. Risks: Perpetual bonds may face interest risk are highly sensitive to changes in interest rates, since they typically have set interest rates. Over long periods of time, this makes them susceptible to inflation risk as well. Perpetual bonds are also often less liquid than traditional bonds. Finally, there is some credit risk associated with perpetual bonds, since issuers may face financial difficulties in the long run that may affect their ability to continue making interest payments. Where is it found in Moment’s Reference Data? Moment indicates whether a bond is perpetual or not in the reference data endpoints with the boolean perpetual field. If a bond is perpetual, the maturity_date field will be null. |
| Pre-Issuance | Definition: Pre-issuance in the context of bonds refers to the period and activities that occur before a bond is officially issued and sold to investors. If a bond has the label “pre_issuance” it means there is reference data for the bond but it has not yet been issued and is unavailable for trading. Context and how to use it: Investors can use the data found in the pre-issuance phase to assess a bond’s risk and potential return. There are pre-issuance activities that can contribute to a bond’s successful issuance process. Where is it found in Moment’s Reference Data? pre_issuance is an available value under the field status which designates if the bond is in the pre-issuance phase or not. Bonds that are pre-issuance are unavailable for trading. It can be found in Moment's Reference Data API endpoints. |
| Private Placement | Definition: Private placement refers to the sale of bonds directly to a select group of investors, rather than through a public offering. This method of issuing bonds is typically used by companies, governments, or other entities to raise capital. Unlike public bond offerings that are available to the general investing public and require more extensive regulatory filings, private placements are offered to a limited number of sophisticated investors and are subject to different regulatory requirements. These bonds are unregistered with the SEC and are not part of the open market. Context and why it is important: Private placements in the U.S. are typically governed by Rule 144A or Regulation D of the Securities Act of 1933, which provide exemptions from the detailed registration requirements that apply to public offerings. There is less disclosure involved in private placement — issuers in private placement are not required to provide as much information as in a public offering. The disclosure requirements are less rigorous, however, which can also mean less transparency for investors. As a result, private placements are generally more suitable for sophisticated investors who have the expertise to analyze and understand the risks without the benefit of extensive disclosures. Private placement securities are also often more customizable, as their terms and conditions be more easily tailored to meet the specific needs of both the issuer and the investors. Features & Benefits: Liquidity: Bonds issued via private placement are typically less liquid than those issued via public offerings. This means it might be harder to sell the bond on the secondary market, or it might sell at a lower price. Yield: Because of the higher risk and lower liquidity, private placement bonds often offer higher yields compared to similar publicly traded bonds. Risks: Due to limited disclosure, investors should conduct thorough due diligence to assess the creditworthiness of the issuer and the potential risks and returns of the bond. Where is it found in Moment’s Reference Data? Moment indicates whether a bond is a private placement or not in the reference data endpoints with the boolean private_placement field. |
| Purpose | Definition: The purpose of a bond refers to the specific reason or the objective for which the bond is issued. It defines how the issuer intends to use the funds raised from the bond sale. Context: The purpose is usually clearly outlined in the bond's offering documents and is a key factor that investors consider when assessing the bond. Understanding the purpose helps investors assess the risk associated with the bond. Certain purposes may carry more risk than others. Examples of bond purposes include: general purpose, merger and acquisition, refinancing debt, general purpose, purchase of funding agreement, and clean transport. Where is it found in Moment’s Reference Data? Moment provides purpose as a field in the reference data endpoints. |
| Putable / Put | Definition: When a bond has a put option, it means that the holder of the security has the right, but not the obligation, to sell the security back to the issuer at a predetermined price and date. Context and why it is important: The put option provides an added layer of security for investors, offering them a way to exit their investment under specific conditions. Typically there are terms of the put option, such as the price at which the bond can be sold back (usually at par value) and the dates on which the option can be exercised, are outlined in the bond agreement. Bonds with put options may be priced differently compared to similar bonds without such options. The added safety feature often results in a lower yield, as investors are willing to accept a lower return for increased protection. Where is it found in Moment’s Reference Data? put is an available value under the field status which designates if the bond has been put or not. There is also the boolean field puttable which indicates if a bond is puttable. Both are found in Moment's reference data endpoints. |
| Regulation S | Definition: Regulation S is a rule under the U.S. Securities Act of 1933 that provides an exemption from the registration requirements for securities offerings made outside the United States. This regulation allows U.S. and foreign issuers to sell securities in non-U.S. markets without the need to register these securities with the U.S. Securities and Exchange Commission (SEC). Context & why it is important: Regulation S plays a vital role in global capital formation, enabling issuers to access international investors without the additional burden and cost of U.S. securities registration. Regulation S securities provide a broader range of geographic regions, potentially allow investors to diversify their portfolios. It is used by both US and foreign companies to raise capital in the international market. These securities might come with different risk profiles, particularly in terms of legal and market risks associated with international jurisdictions, as well as varying degrees of liquidity, depending on the market and the issuer. Furthermore, there are restrictions on the resale of Regulation S securities back into the U.S., which can impact their liquidity and marketability. Understanding the regulatory environment of the issuing country is crucial, as it can significantly differ from U.S. standards, and there might be less publicly available information about these securities compared to U.S. registered offerings, which could impact the due diligence process. Often, securities are offered simultaneously under Regulation S and Rule 144A, catering to both non-U.S. investors (under Regulation S) and qualified institutional buyers in the U.S. (under Rule 144A). Where is it found in Moment’s Reference Data? The reg_s field is a boolean flag in the Moment reference data endpoints that indicates whether the security was offered under the Regulation S securities exemption. |
| Regulatory Call Provision | Definition: A regulatory call provision gives the issuer the right to redeem the bond before its maturity due to changes in regulatory or tax laws that adversely affect the bond or its issuer. Context: This provision is typically included as a protective measure for the issuer against unforeseen regulatory changes that could make the continuation of the bond financially disadvantageous or impractical. For example, suppose a city issues municipal bonds to fund a new public transportation project. The bonds are structured to be tax-exempt, making them attractive to investors seeking tax-advantaged income. The bond indenture may include a regulatory call provision. A few years after the issuance, say the federal government passes a new tax law that eliminates the tax-exempt status of certain types of municipal bonds. This change means that the interest income from these bonds will now be subject to federal taxation. This change in tax law makes the bonds less attractive to investors and could potentially increase the borrowing costs for the city if they were to issue new bonds under these conditions. Due to this significant regulatory change, the city may decide to invoke the regulatory call provision and redeem the outstanding bonds at the agreed-upon price, thus paying off the bondholders and retiring the bonds early. This action would prevent the city from continuing under the new, less favorable tax conditions. Where is it found in Moment’s Reference Data? Moment provides regulatory as an available value within the field call_type in the reference data endpoints. This flag will only appear for bonds that have a call provision. |
| Repaid | Definition: When a bond is repaid, the issuer of the bond has fulfilled its obligation to return the principal amount of the bond to the bondholders. This typically occurs at the maturity date of the bond, but it can also happen earlier if the bond has a callable or puttable feature. Context and why it is important: At the bond's maturity, the issuer is obligated to pay back the principal amount, along with the final interest payment if the bond is a coupon-bearing bond. Once the bond is repaid, the issuer's obligations under the terms of the bond are terminated, and bondholders cease to have any claim or rights associated with the bond. Note, if a bond is callable, the issuer might choose to repay the bond before its maturity date, usually when interest rates have declined. If the bond is puttable, the investor can choose to have the issuer repay the bond before maturity, typically as a response to unfavorable market conditions. Sometimes issuers might repay bonds early as part of a refinancing strategy or a debt restructuring process. Where is it found in Moment’s Reference Data? Moment provides repaid as an available value within the field status in the reference data endpoints. This will indicate whether the bond was repaid or not. |
| Repurchased | Definition: When a bond is repurchased, it means the issuer of the bond buys back the bond from the bondholders before its scheduled maturity date. Context and why it is important: A bond being repurchased is essentially an early redemption of the bond. It can occur if the bond has a callable feature or through a buyback in the open market. In the case of callable bonds, the issuer has the right to repurchase the bond at specified times before maturity, usually at a predetermined price. Issuers may also repurchase bonds from the open market, called a market buyback, potentially at a price different from the original issue price or the callable price. For bondholders, a repurchase can mean the early return of their principal investment. This can be advantageous or disadvantageous, depending on the market conditions and the terms of the repurchase. Issuers often repurchase bonds when interest rates have fallen, allowing them to reissue new debt at a lower cost. This is a common reason for exercising callable bond features. Bond repurchase can affect an issuer’s credit rating and perceived creditworthiness. Where is it found in Moment’s Reference Data? Moment provides repurchased as an available value within the field status in the reference data endpoints. This will indicate whether the bond was repurchased. |
| Restructured | Definition: A bond restructuring refers to the process where the terms of a bond are modified by the issuer, usually in response to financial difficulties or changes in the issuer's ability to meet the original obligations of the bond. This modification is typically negotiated with bondholders and can involve changes to the bond’s interest rate, maturity date, principal amount, or other key terms. Context and why it is important: Some common modifications that happen during a bond restructuring include extending the maturity date, reducing the interest rate, or altering the frequency of interest payments. In some cases, bond restructuring may involve a reduction in the principal amount, known as a "haircut," where bondholders agree to accept less than the full face value of the bond. Ultimately, restructuring often results in bondholders receiving less than initially promised, either in terms of principal or interest. Where is it found in Moment’s Reference Data? Moment provides restructured as an available value within the field status in the reference data endpoints. This will indicate whether the bond was restructured. |
| Revenue Bonds | Definition: Revenue bonds are a type of municipal bond that are are repaid from the income generated by specific projects, enterprises, or sources, rather than from general taxation. For example, projects can include toll roads, bridges, water and sewage treatment facilities, hospitals, and public utilities. Context and why it is important: The credit risk of revenue bonds is based on the projected revenue streams from the project, not the general credit of the municipal government. This is because unlike general obligation bonds, they are not backed by the full faith and credit (and taxing power) of the issuing authority. If the project fails to generate the expected revenue, the bondholders may face delayed payments or default. As a result of this increased risk, revenue bonds often offer higher yields compared to general obligation bonds. Where is it found in Moment’s Reference Data? revenue is an available value of the field municipal_type in the reference data endpoints. This is only specified for municipal bonds. |
| Rule 144A | Definition: Rule 144A is a U.S. Securities and Exchange Commission (SEC) rule that provides a safe harbor exemption from the registration requirements for certain private resales of minimum $500,000 units of restricted securities to qualified institutional buyers (QIBs). It was introduced in 1992 to facilitate the more rapid and efficient trading of privately placed securities among sophisticated investors. 144A applies to securities that are not registered with the SEC and are typically sold through private placements. Context & why it is important: Only qualified institutional buyers, such as those with with at least $100 million in investable assets, are eligible to purchase 144A securities. This is an important flag for retail investors, as they may not be able to bear the associated risks and likely lack the necessary resources to thoroughly assess the investment. Other qualities of 144A securities are that they are generally more liquid than other private placements due to the ease of transferring them among QIBs, but are still less liquid than public securities. Investors in 144A securities need to be aware of the regulatory framework and compliance obligations, especially since these securities are traded in a somewhat less transparent market. Furthermore, these securities can offer a different risk and return profile compared to publicly traded securities. Due to the less stringent disclosure requirements, there might be less information available about the securities, potentially increasing risk. Often, securities are offered simultaneously under Rule 144A and Regulation S catering to both non-U.S. investors (under Regulation S) and qualified institutional buyers in the U.S. (under Rule 144A). Where is it found in Moment’s Reference Data? The 144a field is a boolean flag in the Moment reference data endpoints that indicates whether the security was offered under the 144a securities exemption. |
| Seniority | Definition: Bond seniority refers to the order of priority in which bondholders are repaid in the event of a default by the issuing corporation (including bankruptcy or liquidation). Context & why it is important: Bond seniority determines the risk and potential recovery rate of the investment in case the issuer defaults. The following levels are included in Moment’s reference data, listed in order of seniority: Senior Secured ( senior_secured): These are the highest-ranking bonds. They are secured by specific assets of the issuer, meaning they have a direct claim on certain assets. In the event of default, these bondholders are the first to be repaid from the proceeds of these assets.Secured ( secured): Similar to senior secured but may not have the same level of priority. They are backed by collateral but might rank below other secured debts that are explicitly designated as "senior.”Senior Subordinated Secured ( senior_subordinated_secured): These are secured bonds that are subordinated to senior secured bonds. They have a claim on assets that is subordinate to senior secured bondholders but still have a claim on collateral that gives them priority over various unsecured debt classes.Subordinated Secured ( subordinated_secured): These bonds are secured by the issuer's assets but are lower in priority compared to senior secured and senior subordinated secured bonds. They are still higher in the hierarchy than any unsecured debt.Senior Unsecured ( senior_unsecured): These bonds are not backed by specific assets (unsecured) but have a higher claim on the issuer's remaining assets than other forms of unsecured debt. They are repaid after any secured debt is satisfied.Senior Non-Preferred ( senior_non_preferred): These are senior unsecured bonds but are specifically designated as lower in priority compared to other senior unsecured bonds (if any exist).Senior Preferred ( senior_preferred): These are generally not bonds but preferred shares. However, they rank below all types of bonds in terms of debt repayment but above common equity. They may receive preferential treatment in dividend payments.Senior Subordinated Unsecured ( senior_subordinated_unsecured): These are unsecured and subordinated to senior unsecured bonds. They rank below senior unsecured bonds but above subordinated unsecured bonds in the event of liquidation.Unsecured Bonds ( unsecured): These bonds do not have any collateral backing them and are paid out after all secured debt is satisfied. Their rank can vary, but they are generally below secured and senior unsecured bonds.Subordinated Unsecured ( subordinated_unsecured): These are lower in priority among unsecured bonds. They are repaid after all senior bondholders (secured and unsecured) have been satisfied.Junior Secured ( junior_secured): These are a notch above unsecured bonds, backed by collateral but are subordinate to most other types of secured debt.Junior Unsecured ( junior_unsecured): These are at the lowest end of the bond hierarchy. They are unsecured and have the lowest priority in terms of repayment in the event of default or liquidation.Where is it found in Moment’s Reference Data? The seniority field can be found in the Moment reference data endpoints and indicates what the seniority of the bond is. The available values include (in order of decreasing seniority): senior_secured, secured, senior_subordinated_secured, subordinated_secured, senior_unsecured, senior_non_preferred, senior_preferred, senior_subordinated_unsecured, unsecured, subordinated_unsecured, junior_secured, junior_unsecured |
| Settlement Convention | Settlement Convention Definition: The settlement convention for bonds refers to the standard process through which the legal transfer of bonds from the seller to the buyer is completed, and payment is made by the buyer. This convention includes details like the timing and the specific procedures involved in the settlement of a trade. Context & why it is important: Settlement conventions dictate when the payment must be made and when the bonds will be delivered. This is critical for financial planning and liquidity management for both buyers and sellers. Settlement convention is also important for calculation of accrued interest, as bonds often accumulate interest between coupon payment dates. There are a few different settlement conventions. As it pertains to Moment’s reference data, there are T+1, T+2, and T+3 conventions, which refer to the settlement occurring one, two, or three business days after the trade date, respectively. The 'T' stands for the transaction date, and the number indicates the number of business days after the transaction when the settlement occurs. Where is it found in Moment’s Reference Data? The settlement_convention field can be found in the Moment reference data endpoints that indicates what the security’s settlement convention is. Available fields include T+1 for treasuries and T+2 for corporate bonds, agencies, and municipal bonds. |
| Sinking Fund Provision | Definition: A sinking fund provision is a feature that requires the issuer to periodically set aside funds (a sinking fund, or a pool of money set aside for this purpose) to retire a portion of the debt before it matures. This provision is designed to provide security to bondholders and to decrease the risk associated with the bond. The payments are done through periodic buybacks at specified intervals throughout the bond's lifetime. This means bondholders receive both periodic coupon payments and portions of the principal before maturity, rather than receiving the entire principal amount solely at maturity. Context: Bonds with a sinking fund provision may be deemed more creditworthy, potentially leading to better credit ratings and lower interest rates for the issuer. There are both mandatory and optional sinking funds. Mandatory sinking funds oblige the issuer to make payments into the sinking fund at the specified intervals whereas optional sinking funds give the issuer discretion to make payments subject to certain conditions or market situations.. Where is it found in Moment’s Reference Data? Moment provides sinking_fund as a boolean field in the reference data endpoints. |
| S&P Rating | Definition: Standard & Poor's (S&P) ratings for bonds are a form of credit rating that evaluates the creditworthiness of bond issuers. These ratings are an assessment of the issuer's ability to meet its financial obligations, including paying back the principal and interest on its bonds. How it works: The bonds are rated on a AAA - D scale. The highest rating is AAA, indicating the strongest creditworthiness. Ratings descend through 'AA', 'A', 'BBB', 'BB', and so on, down to 'D' for issuers that are in default. Bonds rated 'BBB-' or higher are considered investment-grade, meaning they have a relatively low risk of default. Bonds rated 'BB+' and below are considered non-investment grade or "high yield," indicating a higher risk. The ratings are based on an analysis of the issuer's financial condition, including factors like revenue, profitability, debt levels, cash flow, and economic outlook. Non-financial factors like management effectiveness and regulatory environment are also considered. Why is it important: The S&P rating can be used as a factor when assessing the risk of a bond. Investment-grade bonds are typically more liquid than non-investment-grade bonds. Higher-rated bonds may be considered safer, but typically offer lower returns, while lower-rated bonds carry more risk, but offer potentially higher returns. Where is it found in Moment’s Reference Data? The field sp_rating has the following available values: AAA+, AAA-, AA+, AA-, A+, A-, BBB+, BBB-, BB+, BB-, B+, B-, CCC+, CCC-, CC+, CC-, C+, C-, D+, D-. A bond with no rating returns NR. The fields sp_rating_date, sp_creditwatch, sp_creditwatch_date, and sp_outlook are related to the S&P rating (see definitions below). It can be found in Moment's Reference Data API endpoints.Note: Available to licensed users only. This data includes Standard & Poor's (S&P) ratings and related financial information. S&P ratings and data are proprietary to Standard & Poor's Financial Services LLC. The information is used under license and is subject to copyright and other intellectual property rights held by Standard & Poor's or its affiliates. |
| S&P CreditWatch | Definition: S&P’s CreditWatch highlights S&P’s opinion regarding the potential direction of a short-term or long-term rating. It focuses on identifiable events and short-term trends that cause ratings to be placed under special surveillance by S&P Global Ratings' analytical staff and provide reason to believe that additional information is necessary to evaluate the current rating. Such events that may prompt a bond being put on CreditWatch may include mergers, recapitalizations, voter referendums, regulatory action, performance deterioration of securitized assets, or anticipated operating developments. A CreditWatch listing does not mean that a rating change is inevitable, when appropriate, a range of potential alternative ratings will be shown. How it works: There are 4 possible labels for S&P’s CreditWatch in Moment’s reference data (positive, negative, developing, and not meaningful). The "positive" CreditWatch designation means that a rating may be raised; "negative" CreditWatch means a rating may be lowered; and "developing" CreditWatch means that a rating may be raised, lowered, or affirmed. Note, CreditWatch is not intended to include all ratings under review, and rating changes may occur without the ratings having first appeared on CreditWatch. Ratings may be placed on CreditWatch under three sets of circumstances: 1) When an event or deviation from an expected trend has occurred or is expected and when additional information is necessary to take a rating action. 2) When there has been a material change in the performance of an issue or issuer, but the magnitude of the rating impact has not been fully determined, and Standard & Poor's believes that a rating change is likely in the short term. 3) A change in criteria has been adopted that necessitates a review of an entire sector or multiple transactions and Standard & Poor's believes that rating changes are likely in the short term. Why is it important: The S&P rating can be used as a factor when assessing the risk of a bond, but the rating often changes based on events affecting the company. Thus, the CreditWatch label can be a helpful signal. For example, if an investor is interested in a high yield bond that has a high S&P rating but knows that there is a negative label for the sp_creditwatch field, it can be indicative of the rating of the bond changing in the future, which could affect a bondholder. Conversely, if a bondholder is interested in riskier bonds that have a poor credit rating but expect that the rating may improve because of a positive indication from sp_creditwatch, that is important to know as well. Where is it found in Moment’s Reference Data? The field sp_creditwatch is available in Moment’s reference data endpoints. It has the following available fields: positive, which means the rating may be raised, negative, which means the rating may be lowered, developing, which means the rating may be raised, lowered, or affirmed, but is still in the process of being confirmed), or not_meaningful, which indicates that there is no clear indication of the potential future direction of the credit rating. The field sp_creditwatch_date is a related field showing the most recent CreditWatch for a bond.Note: Available to licensed users only. This data includes Standard & Poor's (S&P) ratings and related financial information. S&P ratings and data are proprietary to Standard & Poor's Financial Services LLC. The information is used under license and is subject to copyright and other intellectual property rights held by Standard & Poor's or its affiliates. |
| S&P CreditWatch Date | Definition: The date of the most recent Standard & Poor's CreditWatch for the bond in YYYY-MM-DD format. This field will be null if no information about outlook is available or CreditWatch date not available. Why it is important: It is important to know when the S&P CreditWatch was last updated for a bond, as it could affect the accuracy of the rating. Where is it found in Moment’s Reference Data? The field sp_creditwatch_date is available in Moment’s reference data endpoints and has the format YYYY-MM-DD. The field will be null if there is no information from S&P available.Note: Available to licensed users only. This data includes Standard & Poor's (S&P) ratings and related financial information. S&P ratings and data are proprietary to Standard & Poor's Financial Services LLC. The information is used under license and is subject to copyright and other intellectual property rights held by Standard & Poor's or its affiliates. |
| S&P Outlook | Definition: A Standard & Poor's rating outlook indicates S&P’s view regarding the potential direction of a long-term credit rating over the intermediate term (typically six months to two years). In determining a rating outlook, consideration is given to any changes we see in the economic and/or fundamental business/financial conditions. An outlook is not necessarily a precursor of a rating change or future CreditWatch action. In contrast to CreditWatch, an outlook generally is assigned as an ongoing component of long-term ratings, where appropriate, to corporate and government entities (except when the rating is on CreditWatch) and some structured finance ratings. Outlooks have a longer time horizon than CreditWatch listings and incorporate trends or risks that S&P believes have less-certain implications for credit quality. The time frame for an outlook generally is up to two years for investment grade and generally up to one year for speculative grade. The shorter time frame for speculative-grade outlooks reflects the very nature of speculative-grade credits: They are more volatile and more susceptible to nearer-term refinancing risks, liquidity issues, and covenant triggers. Why it is important: It is important to know what the S&P view on the long-term direction of a bond’s credit rating is. A positive outlook indicates a rating may be raised, and a negative outlook indicates a rating may be lowered. A stable outlook is assigned when we believe that ratings are not likely to be changed. Outlooks should not be confused with expected stability of the issuer's financial or economic performance. Where is it found in Moment’s Reference Data? The field sp_outlook is available in Moment’s reference data endpoints. The available values for the field include positive (the rating may be raised), negative (the rating may be lowered), developing (the rating may be raised, lowered, or affirmed), stable (the rating is not likely to change),not_rated (there is no rating), and not_meaningful (the rating outlook does not provide a clear indication of the potential direction of the credit rating). The field will be null if there is no information from S&P available.Note: Available to licensed users only. This data includes Standard & Poor's (S&P) ratings and related financial information. S&P ratings and data are proprietary to Standard & Poor's Financial Services LLC. The information is used under license and is subject to copyright and other intellectual property rights held by Standard & Poor's or its affiliates. |
| Special Call Provision | Definition: A special call provision allows the issuer to call the bond before its maturity under specific circumstances that are more narrowly defined than a typical call provision, and is clearly outlined in the bond's indenture. These circumstances are usually events or conditions that are outside the typical operations of the issuer. This type of call falls under the category of an extraordinary redemption. The provision is often included as a way for the issuer to retire the debt early in very particular situations, usually at a predetermined price. Context: An example of a special call provision is: suppose a corporation issues bonds to finance the construction of a new manufacturing plant. In the bond contract, there's a special call provision stating that the bonds can be redeemed at 102% of their face value (i.e., a 2% premium) if the company receives a specific, substantial government grant for the project. Two years after issuing the bonds, the corporation receives an unexpected government grant designed to support advanced manufacturing technologies. The grant significantly reduces the financial burden of the project. Given this development, the company decides to exercise the special call provision. The bonds are redeemed at 102% of their face value. This action allows the company to reduce its debt cost-effectively, benefiting from the grant. As a result, bondholders are paid off early, receiving a 2% premium above the face value of their bonds. While this might be advantageous if the market interest rates have fallen (since they can reinvest at a similar or better rate), it could be less beneficial if market rates have risen (as they might not be able to reinvest at a similarly attractive rate). Where is it found in Moment’s Reference Data? Moment provides special as an available value within the field call_type in the reference data endpoints. This flag will only appear for bonds that are callable. |
| Sovereign Bond | Definition: A sovereign bond is a type of fixed-income security issued by a national government to raise money for financing government programs, paying down old debt, paying interest on current debt, and any other government spending needs. They often serve as a source of government financing along tax revenue. Sovereign bonds can be denominated in a foreign currency or the government’s domestic currency. Types of sovereign bonds: Sovereign bonds can be denominated in foreign currencies — for example, some countries cannot attract foreign investments in bonds denominated in their domestic currency because foreign investors are unwilling to assume the exchange rate risk. Features & Benefits: Yield: Sovereign bond yields are the interest rate the government pays to buyers of the bond. Much like corporate debt, sovereign bond yields depend heavily on the level of the risk for the buyer. Risks: In addition to the credit risks presented by the issue and the issuing country, sovereign bonds may also be subject to currency risk. Sovereign bonds issued by countries with low ratings tend to have higher political, economic, currency, or other risk and have a higher chance of defaulting. Sovereign bonds issued by countries with high ratings are more stable politically, economically, and otherwise, and have a low risk of default. Where is it found in Moment’s Reference Data? Moment offers US-denominated sovereign bonds as an asset class in the reference data. government is an available value of the field type. |
| Status | Definition: The status of a bond refers to its current standing or condition in the market and in relation to its issuer. This status encompasses several aspects, which are crucial for investors to understand and monitor. Types of status: Various aspects of a bond’s status include the bond’s call status (see “Called”), whether the bond is outstanding (see “Outstanding”), whether the bond has matured (see “Matured”), put status (see “Put”), tender status (see “Tendered”), and whether the bond has been repurchased or not (see “Repurchased”). Where it is found in Moment’s Reference Data: The field status has the following available values: called, defaulted, matured, outstanding, put, tendered, repurchased, and unknown. It can be found in Moment's Reference Data API endpoints. |
| Tendered | Definition: A bond is tendered when the bondholder has responded to a tender offer by agreeing to sell the bond back to the issuer before its scheduled maturity date. This process is part of a tender offer, which is a financial transaction where the issuer invites bondholders to sell their bonds back to the issuer, usually at a premium to the current market price. Context and why it is important: The tender offer involves the issuer making an offer to buy back the bonds, often specifying the price, (which is usually above market value) and the amount of bonds they are willing to purchase. Bondholders can then decide if they want to participate and accept the offer to sell their bonds back to the issuer. Selling a bond through a tender offer can have tax implications. Where is it found in Moment’s Reference Data? Moment provides tendered as an available value within the field status in the reference data endpoints. This flag will only appear for bonds that have the ability to be tendered. |
| Ticker | Definition: The ticker or ticker symbol is a unique series of letters assigned to a publicly traded company's stock for identification purposes on stock exchanges. This symbol is a shorthand used to simplify the process of trading and identifying stocks. **Context and how to use them: Tickers are used within Moment’s data to make identifying the corporate bonds easier to identify. Bonds that are not issued by publicly traded companies have a similarly formatted abbreviation that Moment generates. Where is it found in Moment’s Reference Data? Moment provides ticker as a field that is only populated for corporate bonds. It can be found in Moment's Reference Data API endpoints. |
| Treasury | Definition: Treasuries are debt securities issued by the U.S. Department of the Treasury. They are backed by the full faith and credit of the U.S. government, making them one of the safest investment options available. Treasuries are used to finance federal government operations and to help manage the national economy. Types of treasuries: There are various types of treasuries, including treasury bills, treasury notes, treasury bonds, treasury inflation-protected securities (TIPS), and STRIPS. See “Treasury Subtype” for more information on each of these subtypes of treasuries. Different treasury subtypes offer varying risk profiles, maturities, and income characteristics. Investors choose subtypes that best align with their investment goals, risk tolerance, and income needs. Features & Benefits: Liquidity: Treasuries (with the exception of savings bonds) are highly liquid and can be easily bought and sold in the secondary market. Yield: T-Notes and T-Bonds pay regular interest, providing a steady income stream. Tax Advantages: Interest income is exempt from state and local taxes, though it is subject to federal taxes. Risks: Backed by the U.S. government, treasuries are considered virtually risk-free in terms of credit risk. However, the value of treasuries can fluctuate with changes in interest rates, making them susceptible to interest rate risk. When rates rise, the value of existing bonds typically falls, and vice versa. There is also a reinvestment risk for treasuries, and for non-TIPS treasuries, an inflation risk. Where is it found in Moment’s Reference Data? Moment offers treasuries as an asset class in the reference data. Treasury is an available value of the field type. The treasury_subtype field indicates which subtype the treasury is. Moment currently only supports bonds (long term, i.e. 20, 30 year maturities), notes (immediate term i.e. 2, 3, 5, 7, and 10 year maturities), and bills (short term i.e. 4, 13, 26, 52 weeks, or anything less than a year). The available values for the treasury_subtype field are bond, bill, note, strips, tips, and floating. STRIPS, TIPS, and floating-rate securities will be available soon. |
| Treasury Subtype | Definition: Treasury subtype refers to the specific categories or classes of Treasury securities. These subtypes are based on the characteristics and terms of the securities, such as their maturity length, interest payment structure, and other unique features. Each subtype caters to different investment needs and preferences. Treasury subtypes: Treasury bills (T-Bills) are short-term securities that mature in a year or less from their issue date. They are sold at a discount to their face value, and the investor is paid the face value upon maturity. Treasury notes (T-Notes) are medium-term securities, with maturities ranging from 2 to 10 years. T-Notes pay interest every six months and return the face value upon maturity. Treasury bonds (T-Bonds) are long-term securities, with maturities ranging from 20 to 30 years. Like T-Notes, they pay interest every six months and return the face value upon maturity. Treasury inflation-protected securities (TIPS) offer protection against inflation. The principal amount of TIPS increases with inflation and decreases with deflation, as measured by the Consumer Price Index. TIPS pay interest every six months. STRIPS (Separate Trading of Registered Interest and Principal of Securities) are bonds sold at a discount to their face value, for which an investor does not receive interest payments but instead is repaid with the full face value of the bond when it matures. Floating-rate securities are a specific type of treasury with 2-year maturities and a rate that adjusts each week based on the weekly auction of 3 month T-bills. There are also savings bonds which are often used for educational savings or gifts, and are non-marketable securities, meaning you cannot buy or sell them in the secondary market. Where is it found in Moment’s Reference Data? The treasury_subtype field indicates which subtype the treasury is. Moment currently only supports bonds (long term, i.e. 20, 30 year maturities), notes (immediate term i.e. 2, 3, 5, 7, and 10 year maturities), and bills (short term i.e. 4, 13, 26, 52 weeks, or anything less than a year). The available values for the treasury_subtype field are bond, bill, note, strips, tips, and floating. STRIPS, TIPS, and floating-rate securities will be available soon. |
| Yield to Worst (YTW) | Definition: Yield to Worst (YTW) describes the lowest possible yield that an investor can expect from a bond, without the issuer actually defaulting. Why is this important: YTW is calculated by considering all likely ways that a bond might be repaid before it matures and then determining the lowest yield from among these scenarios. Thus, it is particularly important for bonds with call features, as it helps investors understand the lowest return they might expect if the issuer repays the bond early. This calculation helps investors to make more informed decisions, especially when comparing different bonds that might have varying maturities, call features, and coupon rates. YTW is calculated as the lowest yield from among the YTM, YTC for each call date, and yields for any other redemption scenarios. Where is it found in Moment’s Reference Data? Moment provides close_ytw, which is the YTW for a bond at closing. It can be found in Moment's Reference Data and Evaluated Prices API endpoints. |
Updated 10 days ago