Debt: Difference between revisions
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imported>Doug Williamson (Rationalise title to Treasurer article.) |
imported>Doug Williamson (Expand definition.) |
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That which is owed to another, usually money. | That which is owed to another, usually money. | ||
For the borrower, debt is a liability. | |||
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From the perspective of a lender or investor in debt, an investment in the obligations of the borrower. | 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. | |||
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* [[Debt for equity swap]] | * [[Debt for equity swap]] | ||
* [[Debt service ratio]] | * [[Debt service ratio]] | ||
* [[Default]] | |||
* [[Entity]] | * [[Entity]] | ||
* [[Equity]] | * [[Equity]] | ||
* [[Hybrid capital]] | |||
* [[Interest]] | |||
* [[Investor]] | * [[Investor]] | ||
* [[Junior debt]] | * [[Junior debt]] | ||
| Line 34: | Line 41: | ||
* [[Loan relationship]] | * [[Loan relationship]] | ||
* [[Long-term debt]] | * [[Long-term debt]] | ||
* [[Moratorium]] | |||
* [[Non-current liabilities]] | * [[Non-current liabilities]] | ||
* [[Obligation]] | * [[Obligation]] | ||
Revision as of 12:08, 22 December 2020
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
- Building a Debt IR function
- 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
- 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
