Bond and Insolvency: Difference between pages

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imported>Doug Williamson
(Add link to UK Finance webpage.)
 
imported>Doug Williamson
(Link with Voluntary liquidation page.)
 
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1. ''Securities - debt''.
1.


A marketable longer-term debt instrument usually administered by a trustee.  
Inability to pay financial obligations as they fall due.


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.
2.  


Issuers of bonds include a wide range of corporate and public sector entities, including central governments.
''UK law''.


The inability of a company - on a balance of probabilities - to meet all of its existing, prospective and contingent liabilities, taking account of future costs and of future interest obligations.


2. ''Trade finance - credit support''.
In making this assessment, future income and future asset valuations are also taken into account.
 
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 ==
== See also ==
* [[Advance payment bond]]
* [[Balance sheet insolvent]]
* [[Agent bank]]
* [[Cash flow insolvent]]
* [[An introduction to debt securities]]
* [[Company voluntary arrangement]]
* [[Bearer bond ]]
* [[Cost of financial distress]]
* [[Bid bond]]
* [[Creditors]]
* [[Bond futures]]
* [[Insolvency practitioner]]
* [[Bond issue]]
* [[Insolvency Service]]
* [[Bond mandate]]
* [[Scheme of arrangement]]
* [[Bonding]]
* [[London Approach]]
* [[Bonding line]]
* [[Solvency]]
* [[Bulldog bond]]
* [[Solvency II]]
* [[Callable bond]]
* [[Statement of affairs]]
* [[Catastrophe bond]]
* [[Voluntary liquidation]]
* [[Clean price]]
* [[CMO]]
* [[Convertible bonds]]
* [[Corporate bond]]
* [[Cost of debt]]
* [[Counter-indemnity]]
* [[Coupon bond]]
* [[Covered bond]]
* [[Customs 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]]
* [[Retention bond]]
* [[Security]]
* [[Shallow discount bond]]
* [[Short term]]
* [[Standby letter of credit]]
* [[Straight bond]]
* [[Surety bond]]
* [[Tender bond]]
* [[Yield]]
* [[Yield to maturity]]
 
 
== External link ==
*[https://www.bba.org.uk/customers/business-banking/financial-support/bonds-guarantees/ UK Finance - Bonds & Guarantees]


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

Revision as of 19:49, 7 September 2017

1.

Inability to pay financial obligations as they fall due.


2.

UK law.

The inability of a company - on a balance of probabilities - to meet all of its existing, prospective and contingent liabilities, taking account of future costs and of future interest obligations.

In making this assessment, future income and future asset valuations are also taken into account.


See also