Bond: Difference between revisions

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imported>Doug Williamson
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Line 41: Line 41:
* [[Bearer bond ]]
* [[Bearer bond ]]
*[[Bid bond]]  = tender bond
*[[Bid bond]]  = tender bond
* [[Blue bond]]
* [[Bond basis]]
* [[Bond basis]]
* [[Bond equivalent yield]]
* [[Bond equivalent yield]]
* [[Bond fund]]
* [[Bond futures]]
* [[Bond futures]]
* [[Bond indenture]]
* [[Bond indenture]]
* [[Bond issue]]
* [[Bond issue]]
* [[Bond mandate]]
* [[Bond mandate]]
* [[Bond market index]]
* [[Bond vigilante]]
* [[Bond vigilante]]
* [[Bonding]]
* [[Bonding]]
* [[Bonding line]]
* [[Bonding line]]
* [[Bulldog bond]]
* [[Bulldog bond]]
* [[Bridge to bond]]
* [[Callable bond]]
* [[Callable bond]]
* [[Catastrophe bond]]
* [[Catastrophe bond]]
Line 56: Line 60:
* [[Climate bond]]
* [[Climate bond]]
* [[Collateralised Mortgage Obligation]]
* [[Collateralised Mortgage Obligation]]
* [[Conditional bond]]
* [[Convertible bonds]]
* [[Convertible bonds]]
* [[Corporate bond]]
* [[Corporate bond]]
Line 68: Line 73:
* [[Customs bond]]
* [[Customs bond]]
* [[Debenture]]
* [[Debenture]]
* [[Deep discount bond]]
* [[Default]]
* [[Default]]
* [[Depositary]]
* [[Depositary]]
Line 79: Line 85:
* [[Eurobond]]
* [[Eurobond]]
* [[Exchangeable bond]]
* [[Exchangeable bond]]
* [[Fixed rate bond]]
* [[Floating rate note]]
* [[Floating rate note]]
* [[Foreign bond]]
* [[Foreign bond]]
* [[Formosa bond]]
* [[Gender bond]]
* [[Gilts]]
* [[Gilts]]
* [[Global bond]]
* [[Global bond]]
Line 86: Line 95:
* [[Government paper]]
* [[Government paper]]
* [[Green bond]]
* [[Green bond]]
* [[Green bond framework]]
* [[Green Bond Principles]]
* [[Green savings bond]]
* [[Greenium]]
* [[Greenium]]
* [[Guarantee]]
* [[Guarantee]]
Line 97: Line 109:
* [[Investment-grade bond]]
* [[Investment-grade bond]]
* [[Irredeemable bond]]
* [[Irredeemable bond]]
* [[Issue]]
* [[Jumbo]]
* [[Jumbo]]
* [[Junk bond]]
* [[Junk bond]]
* [[Labeled bond]]
* [[Loan]]
* [[Loan]]
* [[Longer term]]
* [[Longer term]]
Line 104: Line 118:
* [[My word is my bond]]
* [[My word is my bond]]
* [[Nature performance bond]]  (NPB)
* [[Nature performance bond]]  (NPB)
* [[Net zero bond]]
* [[Nominal bond]]
* [[Note]]
* [[Note]]
* [[Obligation]]
* [[Obligation]]
Line 118: Line 134:
* [[Principal]]
* [[Principal]]
* [[Private bond]]
* [[Private bond]]
* [[Public bond]]
* [[Redeemable bond]]
* [[Redeemable bond]]
* [[Retail bond]]
* [[Retail bond]]
Line 123: Line 140:
* [[Retention bond]]
* [[Retention bond]]
* [[Samurai bond]]
* [[Samurai bond]]
* [[Seasoned bond]]
* [[Secured]]
* [[Secured]]
* [[Securitisation ]]
* [[Securitisation ]]
Line 130: Line 148:
* [[Share]]
* [[Share]]
* [[Short term]]
* [[Short term]]
* [[Silk Road bond]]
* [[Social bond]]
* [[Social bond]]
* [[Social Bond Principles]]
* [[Social impact bond]]
* [[Social impact bond]]
* [[Social inclusion bond]]
* [[Social inclusion bond]]
* [[Sovereign bond]]
* [[Sovereign social bond]]
* [[Standby letter of credit]]
* [[Standby letter of credit]]
* [[Straight bond]]
* [[Straight bond]]
Line 138: Line 160:
* [[Stock exchange]]
* [[Stock exchange]]
* [[Sukuk]]
* [[Sukuk]]
* [[Samurai bond]]
* [[Supranational bond]]
* [[Supranational bond]]
* [[Surety bond]]
* [[Surety bond]]
* [[Sustainability bond]]
* [[Sustainability bond]]
* [[Sustainability bond framework]]
* [[Sustainability Bond Guidelines]]
* [[Sustainability-linked bond]]
* [[Sustainable bond]]
* [[Sustainable bond framework]]
* [[Sustainable Bond Market]]
* [[Tender bond]]
* [[Thematic bond]]
* [[Thematic bond]]
* [[Trustee]]
* [[Trustee]]
* [[Use of proceeds bond]]
* [[Use of proceeds bond]]
* [[Wholesale bond]]
* [[Yankee bond]]
* [[Yankee bond]]
* [[Yield]]
* [[Yield]]
Line 149: Line 180:
* [[Zero coupon bond]]
* [[Zero coupon bond]]


[[Category:The_business_context]]
[[Category:Compliance_and_audit]]
[[Category:Long_term_funding]]
[[Category:Long_term_funding]]
[[Category:Compliance_and_audit]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_frameworks]]
[[Category:The_business_context]]
[[Category:Treasury_operations_infrastructure]]
[[Category:Treasury_operations_infrastructure]]

Revision as of 03:44, 12 February 2024

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