If I were rewriting regulation, I would change it to read that only «free surplus» is available to be invested in assets that do not
guarantee principal repayment.
So typically, bonds have less risks than stocks because you get
this guaranteed principal repayment at the end of the bond.
Not exact matches
These funds carry no
guarantee of steady income or of
principal repayment and have no maturity date.
Similar to bonds, they won't
guarantee repayment of
principal, or to return the original amount you invested.
You are
guaranteed the
repayment of your
principal at maturity, in addition to potential interest payment (s) during the term or at maturity.
The
repayment of
principal is
guaranteed and happens at a specified time.
Market Linked GICs
guarantee the
repayment of your
principal at maturity, in addition to potential interest payment (s) during the term or at maturity
Short - term bank paper with the
repayment of
principal and payment of interest
guaranteed by the issuer «s bank.
-- Most CLOs offer additional loss protections: i) Credit enhancement — credit insurance /
guarantees, ii) Excess spread & reserves — a positive interest spread's earned, which may be used to build loss reserves, iii) Overcollateralization (O / C)-- the CLO sponsor adds additional collateral, say an extra $ 5 mio for every $ 100 mio of assets, and iv) Early amortization — an increased level of defaults, and / or certain other events, may trigger an accelerated
repayment of
principal (AAA notes have priority, of course).
Principal protected notes are debt securities that offer a principal - repayment guarantee at maturity, based on the issuer's credi
Principal protected notes are debt securities that offer a
principal - repayment guarantee at maturity, based on the issuer's credi
principal -
repayment guarantee at maturity, based on the issuer's credit rating.