Debt

1.

That which is owed to another, usually money.

For the borrower, debt is a liability.

2.

From the perspective of the borrower, finance from borrowing, rather than from investment by equity shareholders.

3.

From the perspective of a lender or investor in debt, an investment in the obligations of the borrower.

For the lender or investor, debt is an asset.

See also

• Advance
• Assets
• Building a Debt IR function
• Capital
• Capital employed
• Convertible debt
• Debenture
• Debt capacity
• Debt ceiling
• Debt for equity swap
• Debt service ratio
• Default
• Entity
• Equity
• Hybrid capital
• Interest
• Investor
• Junior debt
• Lead
• Leverage
• Leveraged takeover
• Liabilities
• Loan
• Loan relationship
• Long-term debt
• Moratorium
• Non-current liabilities
• Obligation
• Pay down
• Rescheduling
• Return on capital employed
• Senior debt
• Service
• Subordinated debt
• Unsecured debt

Other links

Masterclass: The basics of borrowing, Will Spinney, The Treasurer