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StrikeAndYield crib sheet · information and education only
Fixed Income
Debt instruments that pay interest and return principal — from government bonds to securitised credit.
The shelf — 17 instruments
Plain English 3
| Corporate Bond | Lending to companies for a spread: the extra yield is the price of the chance they don't pay you back. |
| Government Bond | A loan to a state, and the reference price of money itself — the yardstick every other asset is measured against. |
| Green & Sustainability-Linked Bonds | Debt with a purpose clause: either the money is earmarked for green projects, or the coupon itself bets on the issuer's climate targets. |
Needs one idea 10
| Callable Bond | A bond the issuer can hand back early — which means you get your money returned exactly when you least want it. |
| Covered Bond | Bank debt with a safety net: backed by the bank AND a ring-fenced pool of mortgages. Zero defaults in two centuries of Pfandbriefe. |
| Emerging Market Bonds | Lending to the developing world — in dollars you'll probably get back, or in pesos that will decide what they're worth later. |
| Floating Rate Note | A bond whose coupon resets with the market — interest-rate risk engineered out, credit risk left in. |
| High-Yield Bond | Bonds from borrowers the rating agencies doubt — priced somewhere between fixed income and equity, behaving like both. |
| Inflation-Linked Bond | A bond that grows with the price level — real purchasing power, contractually guaranteed. |
| Municipal Bond | Lending to cities, states and school districts — with the US tax code, not the coupon, doing half the work. |
| Schuldschein | A loan that behaves like a bond and is documented like a handshake — the German middle market's answer to the capital market. |
| Sukuk | Not a bond — a certificate of ownership in an asset that generates rent. Economically similar, legally very different, and the difference only shows up when something goes wrong. |
| Zero-Coupon Bond | No coupons, one payment: buy at a discount, collect face value at maturity. The purest interest-rate instrument. |
Market knowledge 4
| Asset-Backed Security | Any cash-flowing asset — car loans, credit cards, royalties — sliced into bonds of graded risk. |
| CMBS | Securitised loans against offices, malls and hotels. Fewer, larger, lumpier loans than residential — which makes the analysis property-by-property and the tail much thicker. |
| Contingent Convertible Bond | A bank bond with a self-destruct clause: it pays like debt until the bank stumbles — then it becomes equity, or nothing. |
| Mortgage-Backed Security | Thousands of home loans bundled into a bond — with the homeowners' right to refinance baked into your risk. |
What moves prices here
- Expected policy rates — The front end is almost nothing else
- Inflation expectations — They set the long end more than current inflation does
- Supply — More issuance, cheaper bonds, all else equal
- Credit spread, where there is credit — It widens far faster than it tightens
- Duration and convexity — The same yield move is not the same price move at both ends
- Forced holders — Regulation and mandates buy regardless of value
The calendar
| Published in advance | Government auctions |
| Monthly | Inflation prints |
| Six to eight times a year | Central bank meetings |
| Month end | Index extension |
| Coupon dates | Reinvestment |
Which risk decides, across the shelf
| Failure mode |
Decides | Share |
| Market | 12 of 17 | 71% |
| Credit | 12 of 17 | 71% |
| Liquidity | 4 of 17 | 24% |
| Funding | 0 of 17 | 0% |
| Operational | 0 of 17 | 0% |
Counted from the same table each product page prints. Not a
rating and not a ranking: there is deliberately no total.