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Debt security: Difference between revisions
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{{Layman|Bond}} | {{Layman|Bond}} | ||
A freely transferable [[financial instrument]] evidencing [[indebtedness]]. Comes in a few different types: | |||
===By type of issuer=== | |||
===[[Senior]]=== | *[[Government bond]]s - issued by sovereigns so existing free of [[capital structure]], logically immune to insolvency, but practically distressingly capable of default (yes we're looking at you Argentina) and of course the [[Who is queen?|“who’s queen?” gambit]] | ||
[[Secured note|Secured notes]] | *[[Corporate bond]]s | ||
===[[Pari passu]]=== | *[[Structured note]]s — weird &wacky [[securitised derivative]]s, issued outta [[espievie]]s | ||
===By name=== | |||
Categorisations that will appeal (and occur) only to etiquette freaks — the sort of folk who are jazzed by which side of your plate you take the bun from — and lawyers: | |||
*[[bond]] - traditionally a fixed rate debt security | |||
*[[Note]] - traditionally a [[floating rate]] security | |||
*[[Medium term note]] - A debt secuyrity issued off a programme rather than as a stand alone) | |||
===By position in the [[capital structure]]=== | |||
====[[Senior]]==== | |||
*[[Secured note|Secured notes]] | |||
====[[Pari passu]]==== | |||
*'''[[Bond]]''': {{bondcapsule}}} | *'''[[Bond]]''': {{bondcapsule}}} | ||
*'''[[Note]]''': {{notecapsule}} | *'''[[Note]]''': {{notecapsule}} | ||
*'''[[Medium term note]]''' (or “[[MTN]]”): {{mtncapsule}} At one time, [[MTN]]s were typically issued only for a medium term — up to about 5 years — but that's all gone now. They still get called [[medium term note]]s though. In practice standalone {{tag|bonds}} and {{tag|notes}} are far less common these days, because they’re such a faff to issue and list, whereas MTNs are much easier and do pretty much the same job. I know how much you love a {{tag|metaphor}}, so think of [[bond|bonds]] and [[note|notes]] as broadsheet newspapers, and [[MTN|MTNs]] as an android app. | *'''[[Medium term note]]''' (or “[[MTN]]”): {{mtncapsule}} At one time, [[MTN]]s were typically issued only for a medium term — up to about 5 years — but that's all gone now. They still get called [[medium term note]]s though. In practice standalone {{tag|bonds}} and {{tag|notes}} are far less common these days, because they’re such a faff to issue and list, whereas MTNs are much easier and do pretty much the same job. I know how much you love a {{tag|metaphor}}, so think of [[bond|bonds]] and [[note|notes]] as broadsheet newspapers, and [[MTN|MTNs]] as an android app. | ||
*'''[[Convertible bond]]''': | *'''[[Convertible bond]]''': | ||
===[[Subordinated]]=== | ====[[Subordinated]]==== | ||
*'''[[Subordinated note]]''': | *'''[[Subordinated note]]''': | ||
===By funkiness=== | |||
{{c|Securities}} | {{c|Securities}} | ||
{{Seealso}} | |||
*[[Security]] | *[[Security]] | ||