Bond and Credit break: Difference between pages

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1.
A credit break is a break clause in a derivatives contract which provides for the release of one or both of the parties from further obligations under the contract, following a deterioration in the creditworthiness of one of the parties.
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.
A guarantee provided by one party to another as part of a contract.
3.
An amount of money provided as security for a guarantee.
4.
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.


== See also ==
== See also ==
* [[Agent bank]]
* [[Break clause]]
* [[Bearer bond ]]
* [[Credit]]
* [[Bond futures]]
* [[Creditworthiness]]
* [[Bond issue]]
* [[Derivative instrument]]
* [[Bond mandate]]
* [[Mutual break]]
* [[Bulldog bond]]
* [[Callable bond]]
* [[Catastrophe bond]]
* [[Clean price]]
* [[CMO]]
* [[Convertible bonds]]
* [[Corporate bond]]
* [[Coupon bond]]
* [[Dirty price]]
* [[Drop-lock bond]]
* [[Eurobond]]
* [[Exchangeable bond]]
* [[Floating rate note]]
* [[Foreign bond]]
* [[Gilts]]
* [[Government paper]]
* [[Guarantee]]
* [[Investment-grade bond]]
* [[Obligation]]
* [[Par bond]]
* [[Par yield]]
* [[Paying agent]]
* [[Performance bond]]
* [[Redeemable bond]]
* [[Security]]
* [[Shallow discount bond]]
* [[Short term]]
* [[Straight bond]]
* [[Yield to maturity]]


[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Treasury_operations_infrastructure]]

Latest revision as of 11:57, 6 July 2022

A credit break is a break clause in a derivatives contract which provides for the release of one or both of the parties from further obligations under the contract, following a deterioration in the creditworthiness of one of the parties.


See also