Call risk is the risk that a bond issuer will call (redeem) a bond before it matures. This can happen if interest rates fall, making the bond less attractive to the issuer. If the bond is called, the investor will get their principal back but will miss out on the higher interest payments that they … Read more
A bondholder is an investor who owns bonds. Bonds are debt instruments that are issued by corporations and governments. They typically have a fixed interest rate and a set maturity date. The benefits of being a bondholder include receiving regular interest payments and having the security of knowing that the debt will be repaid at … Read more
A term bond is a type of debt instrument that pays periodic interest payments and matures at a certain date, known as the maturity date. The term bond is typically used in reference to government bonds, which are issued by national governments. Corporate bonds are also term bonds. Term bonds are a type of debt … Read more
A Eurodollar bond is a bond denominated in U.S. dollars and issued in a country other than the United States. Eurodollar bonds are issued by foreign companies and governments looking to raise money in the U.S. market, and they are typically issued in denominations of $1,000 or more. The term “Eurodollar” is used because the … Read more
The term “A+/A1” is a rating that is given to a fixed income security by two of the major credit rating agencies, Standard & Poor’s and Moody’s. This rating indicates that the security is of high quality and is considered to be a low-risk investment. What is the weird G called? There is no one … Read more
A transportation bond is a type of municipal bond that is used to finance transportation projects. These bonds are typically issued by state and local governments, and they are usually backed by revenues from taxes or user fees. Transportation bonds are often used to finance highways, bridges, airports, and mass transit systems. What is bond … Read more
A Payment-In-Kind (PIK) bond is a type of debt security in which the periodic interest payments are made in the form of additional bonds rather than in cash. The issuer of a PIK bond typically does so because it does not have the cash available to make the interest payments when they come due. PIK … Read more
A certificate of indebtedness is a type of debt instrument that is typically issued by the government in order to finance its operations. The certificate typically has a fixed interest rate and a maturity date, and can be traded in the secondary market. What is an example of indebtedness? An example of indebtedness would be … Read more
A negotiated sale is a sale of securities in which the terms are negotiated between the buyer and the seller, rather than being determined by an exchange or auction. In a negotiated sale, the price and other terms of the sale are agreed upon by the parties involved, rather than being set by the market. … Read more
A Series HH Bond is a type of savings bond that is issued by the United States Treasury. Series HH bonds are similar to Series H bonds, but they have a longer maturity period and earn a higher rate of interest. Series HH bonds are issued in denominations of $500, $1,000, $5,000, and $10,000. They … Read more
