All-in Yield
The total yield to maturity, incorporating both the risk-free rate and credit spread.
In bond markets, 'all-in' refers to the total or comprehensive level. An all-in yield is the bond's complete yield to maturity — the risk-free benchmark rate plus the credit spread. For example, if 10Y Treasuries yield 4.0% and a corporate bond trades at +200bp, the all-in yield is 6.0%. This contrasts with quoting spreads alone (which isolate credit risk) or Treasury yields (which isolate rate risk). The all-in yield captures both components in a single number, making it the actual discount rate used to price the bond's cash flows. In pricing models, the all-in yield can be input directly or constructed by adding a benchmark yield and a spread.
- UST benchmark matches bond maturity via interpolation
- Spread applied as parallel shift to all cashflows
- Periodic compounding (not continuous)
Yield to Maturity (YTM)
The annualized return if you hold the bond to maturity, assuming all coupons are reinvested at the same rate.
Curve Interpolation
Estimating yields at unmeasured maturities by connecting known curve points.
Current Yield
Annual coupon income divided by the bond's clean price.
Running Yield
Annual coupon income divided by the bond's dirty price (clean price plus accrued interest).
Dirty Price
The total settlement price paid for a bond, including accrued interest.
Clean Price
The quoted bond price excluding accrued interest.