CalPERS

Global Fixed Income Glossary

This Glossary identifies, defines, and clarifies the meaning of investment terms used by CalPERS in our investment policies. The purpose of the Glossary is to establish a uniform vocabulary of terms for users of these policies.

Choose from the letters below to find a specific Global Fixed Income Investment Policy term or phrase. You'll also find information about the related policies and asset classes for each term.

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R


Ratings (Rated) - Various alphabetical and numerical designations used by institutional investors, Wall Street underwriters, and commercial rating companies to give relative indications of bond and note creditworthiness. Standard & Poor's and Fitch use the same system, starting with their highest rating of AAA, AA, A, BBB, BB, B, CCC, CC, C, and D for default. Moody's Investors Services uses Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C, and D. Each of the services use + or - or +1 to indicate half steps in between. The top four grades are considered investment grade ratings.

Related Policies


Real Return Relationships - The historical perspective looking at expected returns, less inflation with the expectation that the real return is mean reverting.

Related Policies


Real Return Risk - Real Return Risk is the price volatility produced by changes in market inflation expectations.

Related Policy


Reinvestment Risk - Reinvestment Risk is the uncertain future yield opportunities for investing funds that become available due to call, maturity, or coupon payments.

Related Policies


Repurchase Agreement - Agreement between a seller and a buyer, usually of U.S. government securities, whereby the seller agrees to repurchase the securities at an agreed upon price and, usually, at a stated time.

Related Policies


Reserve Currency Benchmark Country - Reserve Currency Benchmark Countries are those countries whose currency is held in significant quantities by other national governments as part of their foreign exchange reserves. Reserve currencies typically consist of the U.S. dollar, the Euro, the British Pound, and the Japanese Yen.

Related Policy