Bonds

AAA Rating: The Highest Credit Quality
An in-depth look at the AAA rating, the highest credit rating assigned to an issuer's bonds by credit rating agencies, indicating excellent creditworthiness and a very low risk of default.
Above Par: When Asset Value Surpasses Expectations
Above Par refers to an asset trading at a price higher than its par value. It commonly applies to bonds but can be used for other financial instruments.
Actual/Actual: A Day Count Convention
A comprehensive definition of the Actual/Actual day count convention, including its types, features, applications, and historical context.
Advanced Refunding: A Financial Strategy
Advanced Refunding involves issuing new bonds to replace older ones before their call date, often utilized for financial restructuring.
AT PAR: Par Value
Understanding the Concept of Securities Issued or Traded at Their Par Value
Auction Rate Securities: An In-Depth Analysis
Detailed exploration of Auction Rate Securities, their history, mechanisms, importance, and considerations in financial markets.
Average Life: Measure of Bond Duration
A somewhat artificial measure used to compare bonds of different duration and repayment schedules. It is calculated as the average of the periods for which funds are available, weighted by the amounts available in each of these periods.
Baby Bond: Definition, Historical Context, and Key Insights
A comprehensive guide to Baby Bonds, their origins, types, key events, importance, and applicability, including mathematical models and charts.
Bond: A Financial Instrument with Diverse Applications and Risks
A comprehensive guide to bonds, covering types, history, key events, mathematical models, importance, applicability, examples, considerations, related terms, and more.
Bond Agreement: Comprehensive Overview
An in-depth exploration of bond agreements, including their contractual obligations, historical context, types, key events, and practical applications.
Bond Equilibrium: The Balance Between Supply and Demand of Bonds
An in-depth exploration of bond equilibrium, including historical context, types, key events, detailed explanations, mathematical models, and its importance in the financial market.
Bond Face Value: The Principal Amount of a Bond
An in-depth look at the principal amount of a bond, including its definition, historical context, importance, types, calculations, and more.
Bond Issuance: A Detailed Examination
An in-depth look into the process by which bonds are released to investors, including historical context, types, key events, and examples.
Bond Laddering: A Strategy to Mitigate Interest Rate Risk
Bond laddering is a strategy involving the purchase of bonds with different maturities to manage interest rate risk and provide a consistent income stream.
Bond Options: Right but Not Obligation to Buy/Sell Bonds, More Flexible but Complex
Bond Options represent a type of financial derivative giving the holder the right, but not the obligation, to buy or sell a bond at a specific price within a specified period. They offer flexibility and complexity in trading and risk management.
Bond Prospectus: Informative Document for Potential Investors
A Bond Prospectus is a document designed to inform potential investors about the bond and the issuing entity, offering detailed information to help investment decisions.
Bond Trusts: Investment Trusts Focusing Solely on Bonds
Bond Trusts are investment vehicles that specialize exclusively in bonds. These trusts pool money from investors to invest in various types of bonds, offering regular income and potential capital preservation.
Bond-Rating Agency: Assessing Creditworthiness
An agency specializing in assessing the creditworthiness of governments, municipalities, and corporations issuing bonds. Standard and Poor and Moody's are leading US bond-rating agencies.
Bonds: Defining Debt Securities and Investment Instruments
Comprehensive overview of bonds: debt instruments representing a loan made by an investor to a borrower, including traditional bonds, structured notes, and their significance in finance.
Bunny Bond: An Innovative Fixed-Income Instrument
A detailed exploration of Bunny Bonds, their functionality, historical context, significance, and applicability in finance.
Call Provision: Early Repayment Feature in Bonds
A call provision allows the issuer to repay the bond before its maturity under certain conditions. This article provides an in-depth explanation, historical context, types, key events, importance, examples, and more.
Callable: Bonds Redeemable Before Maturity
A comprehensive exploration of callable bonds, detailing their types, historical context, key events, mathematical models, importance, applicability, and more.
Callable Bonds: Understanding Fixed-Rate Convertible Securities
Comprehensive guide to callable bonds, including historical context, key events, mathematical models, and practical considerations.
Collateralized Debt Obligation: An In-depth Exploration
Comprehensive exploration of Collateralized Debt Obligations (CDOs) including history, types, key events, formulas, importance, applicability, examples, related terms, comparisons, interesting facts, and more.
Competitive Bought Deal: A Strategic Underwriting Agreement
A comprehensive guide on Competitive Bought Deals, including historical context, types, key events, detailed explanations, importance, and applicability in the financial markets.
Consol: A Type of Perpetual Bond
A Consol is a type of undated government bond historically issued by the UK government. These perpetual bonds are characterized by their lack of maturity date and were particularly significant in British financial history.
Consols: Perpetual Bonds Issued by the British Government
A comprehensive article on Consols, a type of perpetual bond issued by the British government, covering historical context, key events, types, importance, applicability, examples, and more.
Convertible Securities: Financial Instruments with Flexible Conversion Options
Convertible securities are financial instruments such as bonds or preferred stocks that can be converted into a fixed number of common shares. These versatile instruments offer unique benefits and risk profiles to investors.
Convertible Security: A Financial Instrument with Conversion Feature
A detailed overview of convertible security, a financial instrument that can be converted into another security, primarily common stock. Learn its types, benefits, and key considerations.
Convexity: A Measure of Curvature in Bond Pricing
Convexity is a measure that captures the curvature of the relationship between bond prices and yields, providing a second-order adjustment to duration and accounting for non-linear price changes due to interest rate variations.
Coupon: Financial Instrument and Interest Payments
An in-depth exploration of coupons in the context of bonds, including historical context, types, key events, and detailed explanations with relevant examples.
Coupon: Financial Instrument and Token of Entitlement
A comprehensive overview of coupons in both finance and everyday use, including historical context, types, key events, mathematical models, and more.
Coupon Date: Definition, Importance, and Examples
Understand what a coupon date is, its significance in the bond market, examples, and related terms. Learn how coupon dates impact investors and issuers.
Coupon Payment: The Periodic Interest Payment Made to Bondholders
A comprehensive guide to understanding coupon payments, their significance in the financial world, historical context, key events, mathematical formulas, and practical examples.
Coupon Stripping: An Overview
Coupon stripping is a financial process in which the coupons are detached from a bearer security and sold separately, transforming the original bond into a zero-coupon bond. This method creates multiple securities from a single original bond, serving as a unique mechanism for generating cash flow.
Coupon Yield: Understanding Bond Yields
Coupon yield is a critical concept in the fixed-income market, referring to the annual interest income earned by a bondholder as a percentage of the bond's face value.
Covenant Lite: Loans and Bonds with Fewer Restrictions
A comprehensive guide on Covenant Lite loans and bonds, including definitions, examples, implications, and comparisons with traditional covenants.
Current Refunding: Short-Term Bond Refinance Strategy
A comprehensive exploration of current refunding, the financial strategy of refinancing old bonds shortly before their call date.
Customs Bond: Ensuring Compliance with Regulations and Payment of Duties
A customs bond is a crucial requirement in international trade to guarantee that importers adhere to regulations and pay the necessary duties. Learn about its historical context, types, key events, mathematical models, and much more.
Debentures: Unsecured Debt Instruments
A comprehensive guide to debentures, a type of debt instrument that is not secured by physical assets or collateral, including historical context, types, key events, and more.
Debt: Comprehensive Guide on Financial Obligations
An extensive guide to understanding debt, its types, historical context, key events, importance, applicability, and more.
Debt Capital Market: A Key Financial Instrument for Raising Funds
An in-depth look into Debt Capital Markets (DCM), where companies and governments raise funds through the issuance of debt securities. Explore the history, types, events, formulas, and more.
Debt Instrument: An Essential Financial Tool
A comprehensive guide to understanding debt instruments, their types, key events, explanations, mathematical models, and real-world applications.
Debt Instruments: Financial Assets Signifying Money Owed
Comprehensive guide to Debt Instruments, financial assets including bonds and loans representing money owed by borrowers to investors. Learn about types, examples, and historical context.
Debt Market: An Overview
A comprehensive guide to understanding the debt market, where bonds and other debt instruments are traded.
Debt Securities: Understanding a Broader Category
Explore Debt Securities, encompassing bonds, debentures, and notes. Discover historical context, types, key events, and detailed explanations.
Drop Lock: A Versatile Financial Instrument
An in-depth exploration of Drop Lock Bonds, their mechanics, applications, and implications in financial markets.
Dual Currency Bond: A Fixed Income Security with Multi-Currency Components
A fixed income security that makes coupon payments in one currency and pays the principal in another currency. Learn about its historical context, types, key events, formulas, importance, and more.
Effective Interest Method: Accounting for Bond Premiums and Discounts
The Effective Interest Method is an accounting technique used to amortize bond premiums or discounts. It provides a more accurate representation of the actual interest expense over time by multiplying the bond's carrying amount by the effective interest rate.
Effective Interest Rate Method: Allocation of Interest Expenses
The Effective Interest Rate Method is a sophisticated technique to allocate interest expenses by considering the bond's carrying value, making it crucial for accurate financial reporting and investment analysis.
Eurobond: A Comprehensive Guide to International Bond Issuance
An in-depth exploration of Eurobonds, their types, historical context, key events, importance, applicability, related terms, and much more.
Eurobond: An Overview of International Bonds
An in-depth exploration of Eurobonds, their historical context, types, key events, significance, and applicability in global finance.
EUROCLEAR: A Pan-European Clearing and Settlement System
Euroclear is a pan-European provider of clearing, settlement, and related services for bond, equity, and investment-fund transactions. It was established in 1968 by J.P. Morgan.
Exotic Currency Bond: A Comprehensive Overview
Understand the intricacies and investment potential of exotic currency bonds, including their definition, types, historical context, and notable examples.
Extendible Bond Issue: A Flexible Debt Instrument
A comprehensive overview of Extendible Bond Issues, including historical context, key features, types, applications, and related financial concepts.
Face Value: A Fundamental Concept in Finance and Economics
Exploring the concept of face value, its historical context, types, key events, detailed explanations, and its importance in various fields.
Financial Assets: An Overview of Money and Claims
Explore the comprehensive world of financial assets, including types, historical context, mathematical models, key events, and their critical importance in economics and finance.
Financial Instrument: A Comprehensive Overview
A detailed explanation of financial instruments, their types, historical context, accounting standards, and real-world applications.
Financial Wealth: Wealth in Convertible Forms
An in-depth exploration of financial wealth, including definitions, types, examples, and its significance in economics and personal finance.
Fixed Income Trust: Definition and Overview
A fixed income trust is an investment vehicle that focuses on investments in fixed-income securities such as bonds. This form of trust aims to provide regular income to investors through periodic interest payments.
Fixed-Interest Securities: Investments Offering Fixed Interest Payments
A comprehensive look into Fixed-Interest Securities, investments that provide regular fixed interest payments, including types, historical context, key events, mathematical models, importance, and examples.
Fixed-Interest Security: Understanding Fixed-Income Investments
An in-depth exploration of fixed-interest securities, including their types, historical context, key events, importance, examples, and related financial concepts.
Fixed-Rate Bond: A Bond with a Set Interest Rate Throughout its Life
A comprehensive guide to understanding Fixed-Rate Bonds, their historical context, types, key events, mathematical formulas, and their importance in finance and investments.
Fixed-Rate Bonds: Bonds that pay a constant interest rate
An in-depth look into Fixed-Rate Bonds, their characteristics, advantages, potential risks, and applications in financial markets.
Fixed-Rate Notes: Predictable, Fixed Interest Rate Securities
An in-depth exploration of Fixed-Rate Notes, financial instruments that offer a fixed interest rate throughout their duration, ensuring predictability in returns but lesser flexibility compared to Variable Rate Demand Notes (VRDNs).
Flat Trading: Trading of Bonds without Accrued Interest
Flat Trading refers to the practice of trading bonds without taking into account any accrued interest. The traded price is settled without including the interest that has accumulated since the last interest payment.
Floating Rate Notes: Bonds with Variable Interest Rates
Floating Rate Notes (FRNs) are bonds that have variable interest rates adjusted periodically. These adjustments are often tied to a benchmark interest rate, such as LIBOR or the federal funds rate.
FRN: Floating-Rate Note
A comprehensive overview of Floating-Rate Notes, their mechanics, historical context, and significance in the financial markets.
Funding: Conversion of Government Debt
Funding involves the conversion of government debt from short-term forms, such as bills, to long-term forms, such as bonds. It is a form of monetary policy affecting liquidity and interest rates.
Fungible Issue: Understanding Interchangeable Financial Securities
A comprehensive guide on fungible issues, their types, historical context, key events, mathematical models, importance, applicability, and more.
G-Spread: Yield Comparison Between Bonds and Government Bonds
The G-Spread is a measure of the difference between yields on a bond and a government bond of similar maturity, offering a simplified yet insightful way to assess risk and return.
Geisha Bond: International Bonds Issued in Japan
Geisha Bonds, also known as Shogun Bonds, are yen-denominated bonds issued by non-Japanese entities in the Japanese financial market.
General Obligation Bonds (GO Bonds): A Comprehensive Overview
Understanding General Obligation Bonds (GO Bonds), a type of unlimited tax bond, including their definition, mechanics, historical context, types, advantages, disadvantages, comparisons, and related terms.
Global Bond: Definition and Comprehensive Overview
A detailed article on global bonds, including historical context, types, key events, explanations, formulas, charts, importance, applicability, examples, considerations, related terms, comparisons, facts, stories, quotes, proverbs, expressions, jargon, FAQs, references, and summary.
Government Bonds: Securities Issued by the Government to Finance Public Expenditures
Government Bonds are debt securities issued by a government to support public spending, generally regarded as low-risk investments. They help fund various governmental activities and projects.
Government Debt: Understanding the Obligations
Comprehensive overview of government debt, its types, key events, and detailed explanations. Explore its mathematical models, significance, applications, examples, and related terms.
Government Securities (G-Secs): Debt Instruments Issued by the Government
Government Securities (G-Secs) are debt instruments issued by the government to finance its fiscal deficit. They are considered one of the safest investment options, backed by the government's creditworthiness.
Gross Redemption Yield: Comprehensive Analysis
Explore Gross Redemption Yield: A detailed analysis covering its historical context, mathematical models, practical applications, and relevance in finance.

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