Bondholder and Corkscrew: Difference between pages

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''Debt - securities - bonds.''
A structure for accounting and for the financial modelling of balances.


A bondholder is the current owner of a bond.
The closing balance is calculated from the opening balance, plus or minus the net inflow or outflow for the period.


Analogous to a shareholder in the case of shares.
The closing balance figure in turn provides the opening balance for the next period.  




:<span style="color:#4B0082">'''''Benefits of appointing bond trustees'''''</span>
For example:


:"The issuer may appoint a trustee to represent the interests of the bondholders.
Last year’s closing balance (2020) on the balance sheet = This year’s opening balance (2021)


:A Trust Deed will set out the powers and duties of the trustee, which is likely to be a professional company... The advantages for the issuer are:
+/-  This year’s flow (in or out in 2021) = This year’s closing balance (2021) on the balance sheet


:*The issuer only needs to deal with one entity rather than the potentially many bondholders; and
:*The trustee usually has power to waive defaults if not material and agree minor amendments to the bond terms without consulting each and every bondholder, thus leading to greater flexibility and speed."


:''An introduction to debt securities - the Treasurer's Handbook''


The movement of the developing balance follows a sawtooth or 'corkscrew' path.


==See also==
Hence the name 'corkscrew' for this structure.
*[[An introduction to debt securities]]
 
*[[Bond]]
 
*[[Default]]
 
*[[Material]]
== See also ==
*[[Security]]
* [[Accounting]]
*[[Shareholder]]
* [[Balance]]
*[[Solicitation]]
* [[Daisy chain]]
*[[Trust deed]]
* [[Financial modelling]]
*[[Trustee]]
* [[Inflow]]
*[[Waiver]]
* [[Outflow]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Investment]]
[[Category:Technology]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 11:27, 24 December 2020

A structure for accounting and for the financial modelling of balances.

The closing balance is calculated from the opening balance, plus or minus the net inflow or outflow for the period.

The closing balance figure in turn provides the opening balance for the next period.


For example:

Last year’s closing balance (2020) on the balance sheet = This year’s opening balance (2021)

+/- This year’s flow (in or out in 2021) = This year’s closing balance (2021) on the balance sheet


The movement of the developing balance follows a sawtooth or 'corkscrew' path.

Hence the name 'corkscrew' for this structure.


See also

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