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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A


Adjustable Rate Security - Adjustable Rate Security is a broad description of a fixed income instrument whose rate is determined based on a pre-agreement between two parties. These instruments include floating rate, inverse floaters, leverage floaters and dual index floater securities.

Related Policy


Amortized Cost Method - Valuations initially value debt securities at acquisition cost. The interest earned on each debt security (plus any discount received or less any premium paid upon purchase) is then accrued ratably during the remaining maturity of the security.

Related Policies


Arbitrage - The simultaneous purchase and sale of two instruments for the purpose of capturing a pricing disparity between them. The instruments do not need correlated price movements.

Related Policies


Asset Based Loans - Secured debt that is loaned to primarily non-investment grade borrowers for mostly working capital, acquisitions, turnarounds, growth financing, debtor-in-possession financing (DIP Financing), exit financing, and corporate recapitalization/reorganizations.

Related Policy


Asset Risk - Asset Risk is the risk of holding assets proportionally different from the Index.

Related Policy


Asset-Backed Security - A security collateralized by assets such as automobile loans, agricultural equipment loans, and credit card loans. The loans are securitized by the issuer and usually placed with a trustee.

Related Policies


Authority or Agency - A state or local unit of government created to perform a single activity or a limited group of functions and authorized by the state legislature to issue bonded debt.

Related Policies


Average Life - The average length of time expected to take to retire a debt obligation through amortizing payments, through serial maturity, or sinking funds.

Related Policies