YTC
Business & Finance abbreviation · Bond & Fixed-Income
| Stands for | Yield to call |
|---|---|
| Categories | Business & Finance |
YTC stands for Yield to call, a bond & Fixed-Income abbreviation.
Annual return on a callable bond assuming the issuer redeems it at the first, or a specified, call date and price rather than at maturity. It matters most when a bond trades above its call price, making early redemption likely.
Example: Because the bond trades at 106 and is callable at 102 in two years, its YTC is well below its YTM.
Usage notes
Issuers tend to call bonds when interest rates fall, so investors can lose high-coupon bonds just when replacing them is hardest. Municipal and high-yield bonds frequently carry call features. US municipal bond confirmations show the lower of the call and maturity yields.
Related abbreviations
More bond & Fixed-Income abbreviations
- AAA – Highest credit rating (triple-A)
- ABS – Asset-backed security
- AT1 – Additional Tier 1 capital
- BTP – Buono del Tesoro Poliennale (Italian multi-year Treasury bond)
- CDO – Collateralized debt obligation
- CDS – Credit default swap
- CDX – Credit default swap index
- CLO – Collateralized loan obligation
- CMBS – Commercial mortgage-backed security
- CMO – Collateralized mortgage obligation
- CoCo – Contingent convertible bond
- CP – Commercial paper