A lottery bond is a debt security that is issued by a government or quasi-government entity and is backed by the proceeds from the sale of lottery tickets. The lottery bond is typically issued with a term of 10 to 20 years and pays periodic interest payments, with the principal being repaid at maturity. Lottery … Read more
Callable bonds are bonds that can be redeemed by the issuer prior to their maturity date. This means that the issuer can call the bond back from the investor and repay the principal plus any accrued interest. Callable bonds typically have higher interest rates than non-callable bonds because investors require a higher yield to compensate … Read more
Debt financing is the process of raising capital by selling debt instruments to investors. The most common type of debt instrument is a bond, which is a loan that must be repaid with interest over a specified period of time. Other types of debt instruments include promissory notes, bills of exchange, and commercial paper. Debt … Read more
Bond insurance is insurance that protects bondholders from the risk of a bond issuer defaulting on its debt obligations. The insurance is provided by a third-party insurer, and it typically covers the full value of the bond. Bond insurance can make bonds more attractive to investors, since it reduces the risk of investing in them. … Read more
A serial bond is a type of debt instrument that is issued in a series of installments, or tranches, over a period of time. Each tranche has its own maturity date and interest rate. The first tranche is typically issued at par, while subsequent tranches are usually issued at a discount to par. Serial bonds … Read more
A medium-term note (MTN) is a debt instrument that is typically issued with a term of 5 to 10 years. MTNs are generally issued by large banks or corporations and are often used to raise capital for a variety of purposes, including funding capital expenditures, working capital, or acquisitions. MTNs are typically issued in large … Read more
A bull steepener is a type of bond market yield curve that slopes upward from shorter- to longer-dated maturities. This shape indicates that yields on shorter-dated bonds are lower than those on longer-dated bonds, which is typical during periods of economic expansion. A bull steepener can also be created by a shift in the yield … Read more
A yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates. The most frequently reported yield curve is based on the interest rates of U.S. Treasury securities. This yield curve is used as a benchmark for other debt instruments … Read more
A Guaranteed Income Bond (GIB) is a type of fixed income investment that provides the investor with a guaranteed stream of income for a set period of time. The income from a GIB is often paid out monthly, making it a popular choice for retirees or other investors who are looking for a predictable source … Read more
A Dim Sum bond is a bond issued in the Chinese yuan by a non-Chinese company. The name “Dim Sum” comes from the Cantonese word for “touch heart,” which describes the small, bite-sized servings of food that are traditionally served at Chinese teahouses. These bonds are usually issued in Hong Kong and are used to … Read more
