Bond and Public sector purchase programme: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
(Created page with "''Monetary policy - Eurosystem - Asset Purchase Programme.'' (PSPP). The Eurosystem's public sector purchase programme is part of its asset purchase programme, and is coord...")
 
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1. ''Securities - debt''.
''Monetary policy - Eurosystem - Asset Purchase Programme.''


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).
(PSPP).  


The Eurosystem's public sector purchase programme is part of its asset purchase programme, and is coordinated by the European Central Bank (ECB).


The bond is usually administered by a trustee.  
Assets eligible for purchase include bonds issued by central, regional and local governments, international organisations and multilateral development banks located in the euro area.


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. 
The PSPP was established in 2015.
 
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 ==
== See also ==
* [[Advance payment bond]]
* [[Asset-backed securities purchase programme]]
* [[Agent bank]]
* [[Asset purchase programme]]
* [[An introduction to debt securities]]
* [[Bond]]
* [[Bearer bond ]]
* [[Central bank]]
* [[Bid bond]]
* [[Corporate sector purchase programme]]
* [[Bond futures]]
* [[Covered bond purchase programme]]
* [[Bond issue]]
* [[Development bank]]
* [[Bond mandate]]
* [[euro]]
* [[Bonding]]
* [[Euro area]]
* [[Bonding line]]
* [[European Central Bank]]
* [[Bulldog bond]]
* [[Eurosystem]]
* [[Callable bond]]
* [[Helicopter money]]
* [[Catastrophe bond]]
* [[Investment grade]]
* [[Clean price]]
* [[Modern Monetary Theory]]
* [[Collateralised Mortgage Obligation]]
* [[Monetary policy]]
* [[Convertible bonds]]
* [[Money supply]]
* [[Corporate bond]]
* [[Pandemic emergency purchase programme]]
* [[Cost of debt]]
* [[Prime]]
* [[Counter-indemnity]]
* [[Public sector]]
* [[Coupon]]
* [[Quantitative easing]]
* [[Coupon bond]]
* [[Unconventional monetary policy]]
* [[Covered bond]]
* [[Credit rating]]
* [[Credit rating agency]]
* [[Credit support]]
* [[Customs bond]]
* [[Debenture]]
* [[Depositary]]
* [[Documentation]]
* [[Dirty price]]
* [[Drop-lock bond]]
* [[Eurobond]]
* [[Exchangeable bond]]
* [[Floating rate note]]
* [[Foreign bond]]
* [[Gilts]]
* [[Government paper]]
* [[Guarantee]]
* [[Indemnity]]
* [[Indenture]]
* [[Interest determination date]]
* [[Internal rate of return]]
* [[Investment-grade bond]]
* [[Jumbo]]
* [[Loan]]
* [[Longer term]]
* [[My word is my bond]]
* [[Obligation]]
* [[On-demand bond]]
* [[Paper]]
* [[Par bond]]
* [[Par yield]]
* [[Paying agent]]
* [[Performance bond]]
* [[Principal]]
* [[Redeemable bond]]
* [[Retained bonds]]
* [[Retention bond]]
* [[Security]]
* [[Shallow discount bond]]
* [[Share]]
* [[Short term]]
* [[Standby letter of credit]]
* [[Straight bond]]
* [[Stock]]
* [[Stock exchange]]
* [[Sukuk]]
* [[Surety bond]]
* [[Tender bond]]
* [[Trustee]]
* [[Yield]]
* [[Yield to maturity]]
 
[[Category:The_business_context]]
[[Category:Long_term_funding]]
[[Category:Compliance_and_audit]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Treasury_operations_infrastructure]]

Revision as of 02:13, 27 January 2021

Monetary policy - Eurosystem - Asset Purchase Programme.

(PSPP).

The Eurosystem's public sector purchase programme is part of its asset purchase programme, and is coordinated by the European Central Bank (ECB).

Assets eligible for purchase include bonds issued by central, regional and local governments, international organisations and multilateral development banks located in the euro area.


The PSPP was established in 2015.


See also

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