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Debt - securities - bonds.

A bondholder is the current owner of a bond.

Analogous to a shareholder in the case of shares.

Benefits of appointing bond trustees
"The issuer may appoint a trustee to represent the interests of the bondholders.
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:
  • 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

See also