YTW
Business & Finance abbreviation · Bond & Fixed-Income
| Stands for | Yield to worst |
|---|---|
| Categories | Business & Finance |
YTW stands for Yield to worst, a bond & Fixed-Income abbreviation.
Lowest potential yield an investor can receive on a bond without the issuer defaulting, calculated across all possible call, put and maturity dates. It gives a conservative measure of return for bonds with embedded options.
Example: The high-yield fund reports a YTW of 7.1 percent, below its average yield to maturity.
Usage notes
For a non-callable bond, YTW equals YTM. Index providers and bond funds often publish YTW as the headline yield because it does not overstate expected income. For callable bonds trading at a premium, the worst case is usually an early call.
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