Negative covenants are contractual obligations imposed by lenders on borrowers. They are designed to protect lenders' interests by restricting the borrower's actions. While they might seem restrictive, they serve a crucial purpose: safeguarding the
Fixed-Income Investing
Bond Market: What It Is, How It Works, Key Players, Types
The bond market is vast. Investors buy and sell debt securities there. Governments, corporations, and other entities issue these securities.How does the bond market work?Imagine bonds as IOUs issued by governments or corporations to raise
Unlocking Global Bond Market Potential: Understanding its Size & Key Distinctions
The global bond market presents a vast and complex landscape of investment opportunities. Understanding its sheer scale and the key distinctions between different bond types is crucial for investors seeking to navigate this market effectively and
Bondholders: Who Is It, Roles, Types, Risk and Rewards, Consideration
A bondholder is an individual or institution that invests in bonds issued by corporations or governments. By purchasing a bond, the investor becomes a creditor. They lend money to the issuer. In return, they receive periodic interest payments. The
Domestic Bonds: What It Is, Types and Key Consideration
Domestic bonds are essential investment instruments. They offer a balance between stability and potential returns, making them a cornerstone for many investors. This guide explores domestic bonds, including their definition, benefits, various types,
Foreign Bonds: What It Is, Reasons to Issue and Invest, Key Considerations
Foreign bonds offer a unique investment opportunity for corporations and individual investors. These debt securities, issued by a foreign entity in a domestic market, allow investors to diversify their portfolios, gain exposure to international
Eurobonds: What It Is, How It Works, Examples, Pros, Cons
Eurobonds are essentially debt securities issued and traded outside the jurisdiction of any single country. This unique characteristic distinguishes them from domestic bonds, offering greater flexibility and a global reach that attracts both issuers
Bearer Bonds: What Is It, How It Works, Pros, Cons
Bearer bonds offer a unique blend of anonymity and simplicity. Unlike traditional bonds, where ownership is recorded, they are represented by physical certificates. Whoever physically possesses the bond is considered the owner, regardless of their
Fully Amortized Bonds: What Is It, How It Works, Calculation, Pros, Cons
A fully amortized bond is a debt security with a predetermined payment schedule. These payments, typically made monthly or annually, consist of principal and interest components. Over time, the principal portion of each payment increases while the
Amortized Bonds: What It Is, Types, Examples
Amortized bonds offer a structured approach to debt repayment. In contrast to bullet bonds, which require a significant one-time payment at maturity, amortized bonds break down the debt into smaller, more manageable installments. Each payment
Principal Repayment: Types and Factors to Consider
Understanding how a bond's principal is repaid is essential for investors. The principal repayment structure significantly influences a bond investment's risk profile and potential returns.Key principal repayment structuresBonds are issued
Bullet Bonds: What It Is, How It Works, Features, Pros, Cons
Bullet bonds are a type of debt security that offers a straightforward investment approach with predictable income and capital preservation. Investors lend money to an issuer, receiving regular interest payments and a lump sum principal payment at