Definitions 

A financial security backed by a loan, lease or receivables.

Obligations such as bonds, notes, loans, leases, and other forms of indebtedness, except for cash and cash equivalents, issued by obligors other than the US Government and its agencies, totaled at the level of the ultimate obligor or guarantor of the obligation.

A discount to our estimate of a security’s fair value. By investing at a discount to our fair value estimate, we expect that any mistakes in our estimate or value deterioration will not necessarily result in a negative investment return.

With respect to equity investments, a margin of safety exists when we believe there is a significant discount to intrinsic value at the time of purchase.

A type of asset-backed security that is secured by a mortgage or collection of mortgages.

A type of short-term borrowing for dealers in government securities. The dealer sells the government security to investors, usually on an overnight basis, and buys them back the following day.

The income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment's cost, its current market value or its face value.