Synthetic bonds

Fictional, artificial bonds with standardized traits that are calculated from an existing bond

Synthetic bonds allow the yields of different, complex bonds to be compared. To do so, the coupon payment, maturity and yield are calculated such that the bonds have the same value at a base starting point.

Our glossary explains important financial terms and should not leave any questions unanswered. However, if you are missing a definition, please write to us at We will then include the term if possible.