Asset-Backed Commercial Paper (ABCP) refers to short-term debt instruments issued by financial institutions, which are backed by physical assets such as receivables, leases, or loans.
A bond broker is a financial professional who specializes in buying and selling bonds on behalf of clients. They execute bond trades on the floor of exchanges or trade corporate, U.S. government, or municipal debt issues over the counter, often acting for large institutional accounts.
The bond discount is the difference between a bond's current market price and its higher face value or maturity value. This phenomenon occurs when bonds are issued below par value or due to market conditions such as rising interest rates or heightened default risk.
A bunny bond is a specialized financial instrument that gives bondholders the option to receive interest payments or additional bonds, commonly referred to as 'coupon bonds.' This flexible feature makes bunny bonds an appealing choice for investors seeking growth through compounding interest.
An agreement specifying the rights of debenture holders, often including the power to appoint a receiver in cases of company default.
Eurodollar bonds are bonds that pay interest and principal in Eurodollars, which are U.S. dollars held in banks outside the United States. These bonds are usually issued by foreign corporations or governments.
An extendible bond is a type of bond whose maturity date can be extended at the option of all the involved parties. This flexibility can benefit both issuers and investors under certain market conditions.
An obligation bond is a type of mortgage bond in which the face value is greater than the value of the underlying property. The difference compensates the lender for costs exceeding the mortgage value.
Loans or debt securities that have priority claim over junior obligations and equity on a corporation's assets in the event of liquidation.
A zero coupon bond is issued at a discount and matures at its face value, paying no interest during its life. It is a deep discount bond and offers a unique investment opportunity.
