coupon cushion

02:24 Mar 12, 2013
This question was closed without grading. Reason: No acceptable answer

English to Spanish translations [PRO]
Bus/Financial - Finance (general) / bonds
English term or phrase: coupon cushion
Ojalá me puedan ayudar con esta expresión. De antemano, gracias mil. He aquí el contexto:
But yields now stand at very low levels and, as such, provide little “coupon cushion” in a rising rate environment. This forebodes considerable principal or market risk from the perspective of central banks invested in U.S. Treasuries.
Rafael Molina Pulgar
Mexico
Local time: 04:25


Summary of answers provided
5 +1colchón de rentabilidad
papier
4cupón amortiguador
Magim
4protección precaria
JH Trads


  

Answers


33 mins   confidence: Answerer confidence 5/5 peer agreement (net): +1
colchón de rentabilidad


Explanation:
"Coupon" es el gano alcanzado con los bajos "yelds" que, por ser pequeño no logra proveer al inversor una compensación razonable en un ambiente de tazas crecientes.

papier
Brazil
Local time: 07:25
Specializes in field
Native speaker of: Native in PortuguesePortuguese
PRO pts in category: 4

Peer comments on this answer (and responses from the answerer)
agree  Peter Riccomini
6 hrs
  -> Gracias, Peter!
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3 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
cupón amortiguador


Explanation:
Bono amortiguador: Bonos con cupones elevados que se venden a un precio moderado porque son realizables a un precio por debajo del cual se vendería un bono no realizable.

English: Cushion bonds

Definition of 'Cushion Bond'
A type of callable bond that sells at a premium because it carries a coupon rate that is above market interest rates. A cushion bond's call feature means that it will be priced on a yield-to-call basis (meaning it can be redeemed prior to maturity), rather than on a yield-to-maturity basis; this relatively shortened maturity decreases its sensitivity to changes in interest rates. A cushion bond is so called because its resilience to interest rate fluctuations provides a cushion or a degree of protection against rate changes, especially when they are rising.

Espero poder ayudarte. Saludos!!


    Reference: http://legacy.intracen.org/tfs/docs/glossary/bs.htm
Magim
Italy
Local time: 12:25
Specializes in field
Native speaker of: Spanish
PRO pts in category: 4

Peer comments on this answer (and responses from the answerer)
neutral  Peter Riccomini: No creo que hablen de esto en este contexto
2 hrs
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5 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
protección precaria


Explanation:
'Pero en la actualidad los rendimientos se encuentran en niveles sumamente bajos, por lo cual no representan/proporcionan más que una escasa/protección precaria en un entorno alcista de tasas de interés'

Basta que los tipos de interés del mercado suban un poco para que la pérdida de valor de los bonos iguale, o supere la suma de lo redituado por los cupones, dando como resultado operaciones sin ganancia alguna o con pérdidas. Si las tasas de interés suben mucho, la pérdida de valor de los bonos puede llegar a ser muy importante, o sea que las pérdidas son variables y pueden llegar a ser grandes, mientras que los cupones son bajos y, en la mayoría de los casos, no variables.

JH Trads
United States
Local time: 06:25
Specializes in field
Native speaker of: Native in SpanishSpanish, Native in FrenchFrench
PRO pts in category: 104
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