Bond: Difference between revisions

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imported>Doug Williamson
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imported>Doug Williamson
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* [[An introduction to debt securities]]
* [[An introduction to debt securities]]
* [[Bearer bond ]]
* [[Bearer bond ]]
* [[Bid bond]]
*[[Bid bond]]  = tender bond
* [[Bond basis]]
* [[Bond equivalent yield]]
* [[Bond futures]]
* [[Bond futures]]
* [[Bond indenture]]
* [[Bond issue]]
* [[Bond issue]]
* [[Bond mandate]]
* [[Bond mandate]]
* [[Bond vigilante]]
* [[Bonding]]
* [[Bonding]]
* [[Bonding line]]
* [[Bonding line]]
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* [[Catastrophe bond]]
* [[Catastrophe bond]]
* [[Clean price]]
* [[Clean price]]
* [[Climate bond]]
* [[Collateralised Mortgage Obligation]]
* [[Collateralised Mortgage Obligation]]
* [[Convertible bonds]]
* [[Convertible bonds]]
Line 58: Line 63:
* [[Coupon bond]]
* [[Coupon bond]]
* [[Covered bond]]
* [[Covered bond]]
* [[Credit rating]]
* [[Credit rating agency]]
* [[Credit support]]
* [[Credit support]]
* [[Customs bond]]
* [[Customs bond]]
* [[Debenture]]
* [[Debenture]]
* [[Default]]
* [[Depositary]]
* [[Depositary]]
* [[Dim sum bond]]
* [[Documentation]]
* [[Documentation]]
* [[Domestic bond]]
* [[Dirty price]]
* [[Dirty price]]
* [[Drop-lock bond]]
* [[Drop-lock bond]]
* [[Dual currency bond]]
* [[ESG bond]]
* [[Eurobond]]
* [[Eurobond]]
* [[Exchangeable bond]]
* [[Exchangeable bond]]
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* [[Foreign bond]]
* [[Foreign bond]]
* [[Gilts]]
* [[Gilts]]
* [[Global bond]]
* [[Global note]]
* [[Government paper]]
* [[Government paper]]
* [[Green bond]]
* [[Greenium]]
* [[Guarantee]]
* [[Guarantee]]
* [[High-yield bond]]
* [[Indemnity]]
* [[Indemnity]]
* [[Indenture]]
* [[Indenture]]
* [[Index linked bond]]
* [[Interest determination date]]
* [[Interest determination date]]
* [[Internal rate of return]]
* [[Internal rate of return]]
* [[International bond]]
* [[Investment-grade bond]]
* [[Investment-grade bond]]
* [[Irredeemable bond]]
* [[Jumbo]]
* [[Jumbo]]
* [[Junk bond]]
* [[Loan]]
* [[Loan]]
* [[Longer term]]
* [[Longer term]]
* [[Maple bond]]
* [[My word is my bond]]
* [[My word is my bond]]
* [[Nature performance bond]]  (NPB)
* [[Note]]
* [[Obligation]]
* [[Obligation]]
* [[On-demand bond]]
* [[On-demand bond]]
* [[Panda bond]]
* [[Paper]]
* [[Paper]]
* [[Par bond]]
* [[Par bond]]
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* [[Paying agent]]
* [[Paying agent]]
* [[Performance bond]]
* [[Performance bond]]
* [[Performance guarantee]]
* [[Perpetual bond]]
* [[Premium]]
* [[Principal]]
* [[Principal]]
* [[Private bond]]
* [[Redeemable bond]]
* [[Redeemable bond]]
* [[Retail bond]]
* [[Retained bonds]]
* [[Retained bonds]]
* [[Retention bond]]
* [[Retention bond]]
* [[Samurai bond]]
* [[Secured]]
* [[Securitisation ]]
* [[Securitise]]
* [[Security]]
* [[Security]]
* [[Shallow discount bond]]
* [[Shallow discount bond]]
* [[Share]]
* [[Share]]
* [[Short term]]
* [[Short term]]
* [[Social bond]]
* [[Social impact bond]]
* [[Social inclusion bond]]
* [[Standby letter of credit]]
* [[Standby letter of credit]]
* [[Straight bond]]
* [[Straight bond]]
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* [[Stock exchange]]
* [[Stock exchange]]
* [[Sukuk]]
* [[Sukuk]]
* [[Supranational bond]]
* [[Surety bond]]
* [[Surety bond]]
* [[Tender bond]]
* [[Sustainability bond]]
* [[Thematic bond]]
* [[Trustee]]
* [[Trustee]]
* [[Use of proceeds bond]]
* [[Yankee bond]]
* [[Yield]]
* [[Yield]]
* [[Yield to maturity]]
* [[Yield to maturity]]
 
* [[Zero coupon bond]]
 
== External link ==
*[https://www.bba.org.uk/customers/business-banking/financial-support/bonds-guarantees/ UK Finance - Bonds & Guarantees]


[[Category:The_business_context]]
[[Category:The_business_context]]

Latest revision as of 08:15, 1 June 2023

1. Securities - debt.

In the context of securities, a bond is a formal longer-term debt investment, usually tradeable, issued by a borrowing organisation and bought by a lender (= debt investor).


The bond is usually administered by a trustee.

Bonds typically require the issuer to repay the amount borrowed plus interest over a designated period of time.

The current market yield on the bond is both (1) the market rate of return to the debt investor and (2) the pre-tax market cost to the issuer of debt capital.

Issuers of bonds include a wide range of corporate and public sector entities, including central governments.


2. Trade finance - credit support.

In trade finance, a bond is an instrument issued by a bank or an insurance company, in favour of a buyer, on behalf of a supplier, as additional assurance to the buyer that the supplier will perform its obligations under the supply contract.

Such a bank bond or insurance company bond will be supported by an indemnity issued by the supplier in favour of the bank or insurance company.


Examples include advance payment bonds, bid bonds, customs bonds, performance bonds and retention bonds.

In this context, the terms "bond" and "guarantee" are often used interchangeably.


3. Risk management - guarantee.

A guarantee provided by one party to another.


4. Risk management - collateral.

An amount of money provided as security for a guarantee.


See also