BondA debt instrument, issued by a borrower and promising a specified stream of payments to the purchaser, usually regular interest payments plus a final repayment of principal. Bonds are exchanged on open markets including, in the absence of capital controls, internationally, providing a mechanism for international capital mobility.
BondThe generic name for a tradable loan security issued by governments and companies as a means of raising capital.The bond guarantees its holder:repayment of capital at a future specified date (the maturity date)a fixed rate of interest (also known as the coupon)Government bonds are known as gilts or Treasury Stock.Bonds offer certainty of income, but may fail to keep pace with inflation.As far as the capital is concerned, you only know exactly how much your bond is worth if you plan to hold it to maturity (when you will be paid back the face value). But in the time between issue and maturity, a bond's value can be as volatile as a share, and if you plan to sell before maturity you run the risk of capital erosion. In general:Bond prices fall when bank interest rates go up (because the interest rate rise attracts money out of bonds into cash)Fear of rising inflation will cause bond prices to fall, because investors worry that bonds will not bring enough income to keep pace with inflationThe German and American bond markets have an effect on UK bond prices, because they are competing for the same institutional capital.
Bonded warehouseBonded warehouse
See foreign trade zone.
Twenty bond indexTwenty bond index
A benchmark indicator of the level of municipal bond yields. It consists of the yields on 20 general obligation municipal bonds with 20-year maturities with an average rating equivalent to a1l.
Corporate bondsCorporate bonds
Debt obligations issued by corporations.
A bond, issued and underwritten by international syndicates of banks and issuing houses and sold to investors (such as multinational corporations) outside the country in whose currency it is denominated. A eurobond is normally payable to the bearer and is free of tax.
Lehman Brothers Municipal Bond IndexLehman Brothers Municipal Bond Index
A benchmark index that includes investment-grade, tax-exempt, and fixed-rate bonds with long-term maturities (greater than two years) selected from issues larger than $50 million.
Further Suggestionsproperty bond
Current income bonds
Private purpose bond
Lehman Brothers Aggregate Bond Index
Collateralized Bond Obligation (CBO)
Federal agency bond
Lehman Brothers Corporate Bond Index
Equivalent bond yield
Equity linked Eurobonds
High coupon bond refunding