Sentences with phrase «debt instruments»

"Debt instruments" refer to financial products or tools that represent borrowed money or a form of obligation. They are essentially contracts where one party lends money to another, usually with a promise that the borrowed amount will be repaid with interest over a certain period of time. Examples of debt instruments include bonds, loans, mortgages, and certificates of deposit. Full definition
A bond is a type of debt instrument issued and sold by a government, local authority or company to raise money.
Those people for whom financial stability is of prime importance will do well with a plan that primarily invests in debt instruments which provide stability albeit with limited returns.
Very often people get in trouble with credit cards and promise to stay away from all credit cards and other debt instruments forever.
Investment Objective: - To enhance returns over a portfolio of debt instruments with a moderate exposure in equity and equity related instruments.
In this plan, the investors can invest money in short - term debt instruments for high capital growth.
But in a self - directed RRSP, investors are free to choose other types of investment products, such as debt instruments.
For debt instruments long term capital gain is defined as a profit from sale of Non — equity mutual fund that was held for more than 3 years.
The debt part is invested in debt instruments which are safer so as to minimize volatility and achieve and maintain stability.
Provide returns that exceed the inflation rate, while taking some credit risk (through investments in corporate debt instruments) and maintaining a moderate probability of negative return in the short term.
You can also invest in assets that pay you cash, too, namely coupons on debt instruments and dividends from stocks.
One note of caution: The bonds selected for these bond averages tend to be high - quality, highly rated debt instruments.
One note of caution: The bonds included in this average tend to be high - quality, financially secure debt instruments.
The subprime mortgage fallout continued to affect the banking industry as it became difficult to value debt instruments backed by mortgages and caused a temporary credit freeze in some markets during the late summer.
Within debt, which accounts for major chunk, the fund manager invests primarily in central and / or state government backed debt instruments where the risk associated is not material.
Credit spreads are the difference between yields of various debt instruments.
Money market securities are typically debt instruments with a face value of $ 100,000 or more.
All of the public utility and industrial bonds in the average are highly rated and very safe debt instruments.
Other investments, especially bonds and similar fixed - income debt instruments, can lose value as price levels increase.
They either borrow money through debt instruments or raise money through equity instruments.
A certificate of deposit (CD) is a relatively low - risk debt instrument purchased directly through a commercial bank or savings and loan institution.
The note is the most popular debt instrument in the world.
For debt instruments short term capital gain is defined as a profit from sale of Non — equity mutual fund that was held for less than 3 years.
One of the biggest factors when considering debt instruments is the timeline for paying back the principal and interest of a debt.
The private equity segment invests in control equity and related debt instruments, convertible securities and distressed debt investments.
Bonds are actually very simple debt instruments, if you understand the terminology.
Yet bonds are an integral piece of most portfolios as well as being an important debt instrument, used to create capital for businesses and municipalities.
A bond fund is a company that invests in a pool of mixed debt instruments, or bonds.
These are called debt instruments because they are a kind of borrowing mechanism for companies, banks as well as the government.
The returns and yields on government issued debt instruments experienced a hike although the benchmark 5 - year government yield fell by 115 basis points.
Don't own a stock unless you are likely to be earning significantly more then the preferred stock, much less debt instruments on the same company.
Similarly volatile debt instruments should be marked - to market.
Debt refinancing allows a company to consolidate all of their debt obligations into a new, single debt instrument.
Essentially, loans were becoming more like bonds: they were becoming debt instruments to be traded between various investors, rather than loans which a single bank would hold to maturity and beyond.
Consider the following when deciding which debt instrument lifespan is right for you.
The company also witnessed a preference among customers for debt instruments during the current year.
Like any other debt instrument, preferred stock guarantees regular payments of a preferred dividend.
These are funds which invest in both equities as well as debt instruments.
Bond: A long - term debt instrument with the promise to pay a specified amount of interest and to return the principal amount on a specified maturity date.
As corporate debt instruments, high - yield bonds are subject to the same tax treatment for individuals as investment - grade corporate bonds, as described below.
Banks, credit unions and other financial institutions — they provide several types of debt instruments including credit cards, leasing products, demand / short - term loans and term loans.
For short term, investment in debt instruments is beneficial.
Against this backdrop, some investors are taking a look at convertible bonds, which are debt instruments issued by a company that can be converted into stock of the same company.
Insurance companies invest a huge portion of the premiums collected in government - secured debt instruments and a minor portion in equities.
In general, bonds are debt instruments where investors get interest based on the offered rate.
Over time, we see how various debt instruments and products are introduced to the general population.
A long - term debt instrument with the promise to pay a specified amount of interest and to return the principal amount on a specified maturity date.

Phrases with «debt instruments»

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