What Is A Basis Point (BPS)?

A basis point is a unit of measure that is equal to 0.01 percentage points, i.e. a bond with a yield of 450 basis points has a yield of 4.5% (450 x 0.01). Basis points are used when pricing bond yields, credit default swap financing costs, interest rate changes etc.

To learn more about this concept and become a master at bonds and fixed income, you should check out our Bond Course - Fixed Income (coming soon!).

 

Related Terms

Return to Finance Dictionary

 

 

Start Discussion

Popular Content See all

Why aren't Asians/Indians/Middle Eastern considered diversity
+41IBby Intern in Investment Banking - Industry/Coverage">Intern in IB - Ind
The "right" blue in excel
+24REby Portfolio Manager in Real Estate - Commercial">PM in RE - Comm
Chose Evercore over GS & MS for Full Time - Did I make the right choice?
+20IBby Prospective Monkey in Investment Banking - Mergers and Acquisitions">Prospect in IB-M&A
Do I Count as Diversity?
+19IBby Prospective Monkey in Investment Banking - Mergers and Acquisitions">Prospect in IB-M&A
Leaving New York
+16IBby Intern in Investment Banking - Industry/Coverage">Intern in IB - Ind
Meeting Girls Right Now?
+14OFFby Vice President in Investment Banking - Generalist">VP in IB - Gen

Total Avg Compensation

October 2020 Investment Banking

  • Director/MD (18) $713
  • Vice President (50) $328
  • Associates (265) $228
  • 3rd+ Year Analyst (37) $166
  • 2nd Year Analyst (147) $159
  • Intern/Summer Associate (137) $141
  • 1st Year Analyst (585) $130
  • Intern/Summer Analyst (562) $82

Leaderboard See all

1
LonLonMilk's picture
LonLonMilk
98.4
2
Jamoldo's picture
Jamoldo
98.3
3
Secyh62's picture
Secyh62
98.2
4
CompBanker's picture
CompBanker
97.9
5
redever's picture
redever
97.8
6
Addinator's picture
Addinator
97.6
7
frgna's picture
frgna
97.5
8
NuckFuts's picture
NuckFuts
97.5
9
bolo up's picture
bolo up
97.5
10
Edifice's picture
Edifice
97.3