Bond
A bond is an interest-bearing certificate of indebtedness. The issuer of the bond has an obligation to pay the holder of the bond a fixed rate of interest over the life of the obligation. Bonds usually have varying maturities such as a maturity of five years, ten years or longer.
Bond-holders representative
The representative safeguards the rights of the bondholders or other holders of financial instruments.
Coupon rate
The fixed interest paid on a bond as a percentage of its face value, each year, until maturity. In Thailand the coupon is usually paid semi-annually or annually.
Debenture
A debenture, like a bond, is an interest-bearing certificate of indebtedness. Some debentures can be exchanged for common stock and are called convertible debentures.
Default risk
This is the risk that a bond issuer will be unable to pay interest or the principal for a bond. The credit rating could be a useful tool in anticipating the default risk associated with each bond.
Face value
The principal of a security which is to be repaid at maturity.
Issuer
The corporate, government or legal entity which has the authority to offer its own bonds or other financial instrument.
Liquid asset
An asset which can be readily converted to cash.
Maturity date
The date on which the principal balance owing on a loan or other financial security is due to be paid back.
Private placement
An entire issue is offered to no more than 35 investors or to the 17 types of institutional investors as specified by SEC. Click here for the 17 types of investors.
Public offering
A public offering is the initial offer to the general public to buy a particular security, such as a bond, debenture or stock. Offerings are usually made by the underwriting syndicate; the group of banks which is raising the finances for the issuer.
Redemption
Repayment of the principal at maturity of a bond.
Registrar
The central agency which keeps records of the holders of financial instruments.
Secondary market
The market in which existing securities such as bonds and stocks are resold to other investors.
Scrip
The certificate which is issued to the holder of a bond or other financial security.
Scripless transaction
An electronic transaction in which no paper certificate is issued.
Tenor
The maturity period for a bond or financial security.
Underwriter
The underwriter is an investment bank which guarantees the price of a financial security to the issuer before counseling to investors.
Yield
The return on an asset, expressed as a percentage of price. In the case of a bond the yield fluctuates in line with the market interest rate. |
