Bond: Difference between revisions
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1. ''Securities''. | 1. ''Securities - debt''. | ||
A marketable longer-term debt instrument usually administered by a trustee. | A marketable longer-term debt instrument usually administered by a trustee. | ||
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2. ''Trade finance''. | 2. ''Trade finance''. | ||
In trade finance, 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. | 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. | 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. | ||
Revision as of 21:06, 26 March 2021
1. Securities - debt.
A marketable longer-term debt instrument 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 the market rate of return to the debt investor and 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.
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.
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
- Agent bank
- An introduction to debt securities
- Bearer bond
- Bond futures
- Bond issue
- Bond mandate
- Bonding
- Bonding line
- Bulldog bond
- Callable bond
- Catastrophe bond
- Clean price
- CMO
- Convertible bonds
- Corporate bond
- Cost of debt
- Counter-indemnity
- Coupon bond
- Covered bond
- Depositary
- Dirty price
- Drop-lock bond
- Eurobond
- Exchangeable bond
- Floating rate note
- Foreign bond
- Gilts
- Government paper
- Guarantee
- Indemnity
- Interest determination date
- Internal rate of return
- Investment-grade bond
- Jumbo
- My word is my bond
- Obligation
- On-demand bond
- Par bond
- Par yield
- Paying agent
- Performance bond
- Redeemable bond
- Retained bonds
- Security
- Shallow discount bond
- Short term
- Straight bond
- Yield
- Yield to maturity
