Defined terms for the annuity market and lifetime income landscape.
The yield curve is the pattern of interest rates by maturity for bonds of comparable credit quality, most commonly US Treasury securities, showing what the market currently pays lenders across short-term, medium-term, and long-term bonds.
Yield curve inversion is the pattern where short-term interest rates on bonds of comparable credit quality exceed long-term interest rates on the same class of bonds, reversing the typical upward slope of the term-structure.
Yield enhancement strategy is the operational descriptor for an investment approach that seeks higher portfolio yield than the traditional public investment-grade fixed income baseline, typically by extending duration, reducing liquidity, or shifting into private credit.
