Central Moneymarkets Unit Bond Price Bulletin

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FAQ

What is "yield-to-call" (YTC).
What is "offer yield" and "bid yield".
If I’m interested in buying bonds quoted in this website, who should I contact?
Who can and how to apply for the login and password of CMU website?

What is "yield-to-call" (YTC).

For some bonds, yield-to-call instead of yield-to-maturity will be quoted by bank as there will be embedded feature in a bond such that the issuer has a right (option) to repurchase a bond before its date of maturity, without requiring the holder's consent. If the bond is callable, yield to call (YTC) is generally used to measure the performance of the bond, from the time of purchase to its call date. Similar to YTM, it can be calculated using the call date instead of the maturity date, and the call price instead of the par value.
If a bond is callable, the date and price at which it can be called is specified on the certificate and in the prospectus.


Updated :2006/12/20

What is "offer yield" and "bid yield".

These two figures are provided by our price providers as a reference of the rate of return of the total sum of a bond (coupon payments plus capital gain or loss**) to be received by an investor from the time of purchase till maturity / call.

** (The capital gain or loss is the difference between par value and the actual purchase price paid by investor)

In general if you are interested in buying a bond, the offer price quoted by your bank may be different from the bond's par value.

Offer yield is a reference rate of return if you buy the bond from the bank at the offer price quoted by the bank whereas bid yield is a reference rate of return if you sell the bond to the bank at the bid price.


Updated :2006/12/20

If I’m interested in buying bonds quoted in this website, who should I contact?

Offer price / yield quoted in this website is only an indication of the possible rate of return of holding a bond from date of purchase till maturity or call date, you can contact the bank (you can check the bank’s contact information from the “Fee Scale and Contact” section) or make use of the hyperlinks on the website to access the websites of the price providers for direct trading. Investment may involve risks and all data quoted on our website is just for reference and you should seek professional advice where appropriate.

Updated :2006/12/20

Who can and how to apply for the login and password of CMU website?

CMU member login is only available to CMU members and the CMU Membership is open to

• Financial institutions regulated by the Hong Kong Monetary Authority, Securities and Futures Commission, Office of the Commissioner of Insurance and Mandatory Provident Fund Schemes Authority; and
• other domestic or overseas financial institutions subject to the discretion of the MA.

If you are a CMU member and would like to get an user ID and password to login our CMU website for downloading CMU circular and information restricted to CMU members, please download the CMU Price Bulletin User Account Maintenance Form, complete and return to the CMU via fax (852) 2878 1676 to 2878 1679


Updated :2015/07/14