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{{ | {{essay|repack|Debt security|{{image|Transylvanian Bond|jpeg|A bond certificate with [[coupon]]s yesterday.}}{{Layman|Bond}} }}{{dpn|Debt security|/dɛt/ /sɪˈkjʊərɪti/|n| }}A freely transferable [[financial instrument]] evidencing [[indebtedness]]. Contrast [[debt securities]] to [[equity securities]] — instruments such as shares, warrants units, which pay neither principal nor interest, but rather account for the overall performance of the company who issue them. [[Debt security|Debt securities]] generally rank ahead of equity securities in the capital structure of the issuer. This is because an issuer must pays off [[creditor|creditors]] before [[shareholder|shareholders]].Comes in a few different types: | ||
===By type of issuer=== | ===By type of issuer=== | ||
*[[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]] | *[[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]] |