Bond: Difference between revisions
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* [[Cost of debt]] | * [[Cost of debt]] | ||
* [[Counter-indemnity]] | * [[Counter-indemnity]] | ||
* [[Coupon]] | |||
* [[Coupon bond]] | * [[Coupon bond]] | ||
* [[Covered bond]] | * [[Covered bond]] | ||
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* [[Paying agent]] | * [[Paying agent]] | ||
* [[Performance bond]] | * [[Performance bond]] | ||
* [[Principal]] | |||
* [[Redeemable bond]] | * [[Redeemable bond]] | ||
* [[Retained bonds]] | * [[Retained bonds]] | ||
Revision as of 11:13, 3 November 2021
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
- Advance payment bond
- Agent bank
- An introduction to debt securities
- Bearer bond
- Bid bond
- Bond futures
- Bond issue
- Bond mandate
- Bonding
- Bonding line
- Bulldog bond
- Callable bond
- Catastrophe bond
- Clean price
- Collateralised Mortgage Obligation
- Convertible bonds
- Corporate bond
- Cost of debt
- Counter-indemnity
- Coupon
- Coupon bond
- Covered bond
- Credit support
- Customs bond
- Debenture
- Depositary
- Documentation
- Dirty price
- Drop-lock bond
- Eurobond
- Exchangeable bond
- Floating rate note
- Foreign bond
- Gilts
- Government paper
- Guarantee
- Indemnity
- Indenture
- Interest determination date
- Internal rate of return
- Investment-grade bond
- Jumbo
- Loan
- Longer term
- My word is my bond
- Obligation
- On-demand bond
- Paper
- Par bond
- Par yield
- Paying agent
- Performance bond
- Principal
- Redeemable bond
- Retained bonds
- Retention bond
- Security
- Shallow discount bond
- Share
- Short term
- Standby letter of credit
- Straight bond
- Stock
- Stock exchange
- Sukuk
- Surety bond
- Tender bond
- Trustee
- Yield
- Yield to maturity
