"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.
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.
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.
A certificate of deposit (CD) is a relatively low -
risk debt instrument purchased directly through a commercial bank or savings and loan institution.
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.
The private equity segment invests in control equity and
related debt instruments, convertible securities and distressed debt investments.
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.
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.
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.
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.
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.
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»