Yield

The income return on an investment, expressed as a percentage. For lenders, it represents the return earned from interest payments on loans or leases. Example: A Kenyan pension fund invests KES 100,000,000 in a portfolio of equipment leases generating KES 16,000,000 in annual interest income. The yield is 16% — higher than government bonds at 12% but with more risk, which the fund manages by diversifying across 50 different lessees.