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Debt security

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debt security investment & finance definition
A security representing borrowed funds that must be repaid. Examples of debt securities include bonds, certificates of deposit, commercial paper, and debentures.
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Debt Security
A debt security is a security that represents a loan made by an investor to an issuer. The issuer agrees to pay interest and to repay the debt on a specified date in exchange for being granted the loan.
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Debt security A security representing borrowed funds that must be repaid. Also bond, liability.

Debt Security A tradable security that represents borrowed funds (e.g., bond, bill, note or commercial paper) and an obligation to repay those funds.

Debt Security
Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount borrowed), interest rate and maturity/renewal date.

Debt security: A security representing a fixed amount of money borrowed that must be repaid. The security usually has a fixed maturity and interest rate. If you purchase a debt security, the issuer is "borrowing" the face value from you.

Debt security
Debt securities are interest-paying bonds, notes, bills, or money market instruments that are issued by governments or corporations.

GSE debt security
Debt issued by government-sponsored enterprises (GSEs)-those financing entities created by Congress to fund loans to certain groups of borrowers such as homeowners, farmers and students.

Debt security
General term for any security representing money loaned that must be repaid to the lender at a future date. Bonds, notes, bills, and money market instruments are all debt securities.
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A debt security that pays investors a high interest rate because of its high risk of default. Junk bonds aren't for everybody or even most people, but they aren't all bad.

A debt security that doesn't pay interest (a coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value.
Also known as an "accrual bond".

A debt security, typically issued by a municipality, in which the yield is reset on each payment date via a Dutch auction.
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Dutch Auction ...

A debt security that obligates the issuer to pay the holder interest during the term of the bond, with some exceptions, and the principal at or before maturity.
Bond Anticipation Note (BAN) ...

See: Debt Security; General Mortgage
General Obligation Bond
Commonly abbreviated as "GO" bond, it is a municipal bond secured by the "full faith and credit" (taxing and borrowing power of the issuer) of the municipality.

It is a debt security issued by a business entity or government, which do not require registration in the name of the owner, and both the interest and the principal are paid to the bearer of the bonds.
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A debt security, or an IOU, issued by a company or government agency is called a bond.

A mid-term debt security of the U.S. Government, with maturities ranging from two to ten years that pay a fixed rate of interest every six months and returns its face value at maturity.

A bond is a debt security, similar to an IOU. When you purchase a bond, you are lending money to a government, municipality, corporation, federal agency, or other entity known as the issuer.

A long-term debt security, issued by a corporation or government, with a stated interest rate and fixed due dates when interest and principal must be repaid.
Bondholder ...

A long-term debt security of the Government or a corporation with maturity of 10 years or more from the issue date. Interest is usually paid every six months and its face value returned, repaid at maturity.

Bond - A debt security with a maturity of greater than one year; a corporate or government IOU. You buy a piece of paper from a corporation with the understanding that they will pay you back in a certain amount of time.

Bond:
An IOU (debt security) issued by company, municipality, or government agency. The bond issuer promises to pay the bond holder a stated rate of interest up to the date of maturity, when the issuer promises to repay the principal.

WARRANT - A debt security issued in certain jurisdictions that is often issued in relatively small principal amounts to pay project costs as they are incurred.

Interest-bearing debt security issued by a company, local authority or central government, redeemable on a pre-arranged date for a set amount.
Bordereau
Confirmation and description of the execution of an exchange order.

Government Bond - Debt security issued by the U.S. Government.
Government National Mortgage Association (GNMA) - A government corporation that provides primary mortgages through bond issuances. Its securities are called Ginnie Maes.

Interest rate on a debt security the issuer promises to pay to the holder until maturity, expressed as an annual percentage of face value.
Coupon Rate ...

Bill A short-term debt security such as a U.S. Treasury bill with a maturity ranging from 13 weeks to a year.
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A debt security backed by a pool of commercial loans. clone A mutual fund designed to match the performance of an existing successful fund...

Salomon Brothers Inc's proprietary Equity Linked Debt Security (q.v.). A debt obligation of Corporation A, equivalent to a buy-write on one share of Corporation B.

Treasury Bond (T-Bond) A long term government debt security with maturity of 10 to 30 years. Treasury Note (T-Note) A medium term government debt security with maturity of 1 to 10 years.

Failure to pay principal or interest on a debt security. Owners of a bond that is in default can usually make claims against the assets of the issuer to recover their loss. A bond that is in default is rated D by Standard & Poor's.

This debt security can be issued by government structures, cities, local authorities and their agencies. The municipal bonds are typically exempt from income tax. The revenue bond is a special sub-category of the municipal bonds.

Held to Maturity - Held to Maturity is debt security that a company or corporation has the ability and the intent to hold their stock certificates until they mature. There is no intent to sell or trade.

An exchange-traded, fixed income-like instrument consisting of a subordinated debt security and a share of common stock packaged together to form a tax-efficient delivery mechanism to distribute an issuer's free cash flow to its investors.

A long-term debt security issued by a federal mutual savings association that is subordinated to all other claims on assets, and is not covered by federal deposit insurance.

T-bills are the most widely issued government debt security and are auctioned weekly and monthly. The T-bill interest rate is considered the risk-free rate of variable return to investors.

Bonds: Bonds are basically a type of debt security in which you lend some money to a company or the government. In return, you will get the money back with interest depending on the interest rate.

Treasury Bond: A long-term debt security issued by the US government. Maturities are usually between 20 and 30 years, typically running 20 and 30 years. The 10-year Treasury Note is the benchmark security for US debt.

With the iPath, which is the name by which Barclays markets and sells exchange traded notes, an investor buys from Barclays a 30-year debt security listed on the New York Stock Exchange.

A debt security issued by face amount. The holder makes payments periodically to the issues, ...

U.S. Treasury Bond: Government-debt security with a coupon and original maturity of more than 10 years. Interest is paid semiannually.
U.S. Treasury Note: Government-debt security with a coupon and original maturity of one to 10 years.
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The measurement of a change in the yield of a debt security. One basis point equals 1/100 of a percent.
Basis Quote
Offer or sale of a cash commodity in terms of the difference above or below a futures price (e.g., 10 cents over December corn) ...

Note: A note is a short-term debt security, usually with a maturity of five years or less.
Offer Price: An offer price is the price asked by a seller of securities. It is the price at which a security will be sold to an investor.

U.S. Treasury Note: Government-debt security with a coupon and original maturity of one to 10 years.
U.S. Treasury Bond: Government-debt security with a coupon and original maturity of more than 10 years. Interest is paid semiannually.

Bonds
A long-term debt security with a stated interest rate and fixed due dates, issued by a corporation or a government, when interest and principal must be paid. There are many variations.

Corporate Bond: A debt security issued by a corporation. A corporate bond typically has a par value of $1,000, is taxable, has a term maturity, and is traded on a major exchange.

A corporate bond is a long-term debt security issued by a company, with a fixed periodic interest rate and a maturity of more than one year.
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Bond
An interest bearing or discounted debt security issued by corporations and governments. Bonds are essentially loans by the investor to the issuer in return for interest payments.

An exchange-traded note (or ETN) is a senior, unsecured, unsubordinated debt security issued by an underwriting bank. Similar to other debt securities, ETNs have a maturity date and are backed only by the credit of the issuer.

Zero coupon bond
Such a debt security pays an investor no interest. It is sold at a discount to its face price and matures in one year or longer.
<< Marshall Loeb ...

Treasury Bond: See U.S. Treasury Bond : Government-debt security with a coupon and original maturity of more than 10 years. Interest is paid semiannually.

Redemption
The repayment of the principal (par) amount of a debt security, or a preferred stock, at or before its maturity. Mutual fund shares are redeemed at net asset value when a shareholder liquidates their shares.

Treasury Notes (T-Notes)
Government issued debt security that pays interests semiannually, maturing in two to ten years.
TRIN
See Arms Index.

Yield to maturity
The yield received by the holder of a debt security at maturity, taking into account any gain or loss of principal.
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Redemption
Repayment of a debt security or preferred stock issue, at or before maturity, at par or at a premium price.

Yield to Maturity (YTM) : The rate of return yielded by a debt security that is held to maturity when both interest payments and the investor's capital gain or loss on the security are taken into account.
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[EPA] The measurement of a change in the yield of a debt security. One basis point equals 1/100 of one percent. [CFTC] one basis point equals 1/1OOth of one percent, or .0001. For example, 50 basis points is equal to 1/2 percent.

Subordinated debenture: A debt security that will be paid off after the issuer first pays off debt to senior creditors in the event of the dissolution of the company.

If it is a debt security, it can be further categorised into short term (less than one year) or long term. Foreign Exchange instruments and transactions are neither debt nor equity based and belong in their own category.

Depending on its investment objectives and policies, a bond fund may concentrate its investments in a particular type of bond or debt security-such as government bonds, municipal bonds, corporate bonds, convertible bonds, mortgage-backed securities, ...

See also: Debt, Security, Interest, Market, Securities