Yield to maturity
Market basicsAlso called: YTM
The return a bond portfolio would deliver if every holding were held to maturity.
In plain terms
A noticeably higher YTM means weaker credit, not a better manager.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Coupon
Market basicsThe fixed periodic interest a bond pays, expressed as a percentage of its face value.
In plain terms
Not your return. Buy above face value and the premium is a loss spread across the holding period, which yield to maturity captures and the coupon does not.