debt security


Also found in: Wikipedia.

Debt Securities

Any debt issued by a government or corporation that may be traded. That is, the original buyer of the debt security effectively lends the issuer money in exchange for the security, which gives the holder the right to receive interest payments and, at maturity, the principal. The holder may, at his/her/its discretion, sell the security to someone else, who then gains the right to receive interest and principal from the issuer. In general, debt securities are less risky than stocks; their riskiness relative to each other is determined by the creditworthiness of the issuer.

debt security

A security representing borrowed funds that must be repaid. Examples of debt securities include bonds, certificates of deposit, commercial paper, and debentures.

Debt security.

Debt securities are interest-paying bonds, notes, bills, or money market instruments that are issued by governments or corporations.

Some debt securities pay a fixed rate of interest over a fixed time period in exchange for the use of the principal. In that case, that principal, or par value, is repaid at maturity.

Some are pass-through securities, with principal and interest repaid over the term of the loan. Still other issues are sold at discount, with interest included in the amount paid at maturity.

US Treasury bills, corporate bonds, commercial paper, and mortgage-backed bonds are all examples of debt securities.

References in periodicals archive ?
The debt security is an efficient instrument guaranteeing collection of claims.
The regulations empower the trustees to (i) regularly monitor payment of profit/mark-up/interest to the debt security holders and redemption of the securities; (ii) regularly monitor maintenance of the security, if any, backing the debt instrument; (iii) ensure that compliance with the provisions of the Trust Deeds, particularly their covenants, are adhered to; and (iv) monitor that the debt security holders' complaints are resolved by the issuers.
According to a handout issued by SECP on Monday, the regulations empower the trustees to regularly monitor payment of profit/mark-up/interest to the debt security holders and redemption of the securities; regularly monitor maintenance of the security, if any, backing the debt instrument; ensure that compliance with the provisions of the Trust Deeds, particularly their covenants, are adhered to; and monitor that the debt security holders' complaints are resolved by the issuers.
In addition to the contingent conversion price trigger, the convertible debt securities will be convertible into shares of Wells Fargo common stock (i) if Wells Fargo calls the convertible debt securities for redemption, (ii) if the credit ratings assigned by Standard & Poor's and Moody's are reduced below either A- or A1 or the rating is withdrawn, (iii) if the convertible debt security trades below 98 percent of parity for a period of five consecutive trading days, and (iv) in the event that Wells Fargo takes certain corporate actions.
81 provides guidance to auditors evaluating both management's intent with regard to an investment and the entity's ability to hold a debt security to maturity.
The significance of three ratings is that it provides for a consensus view of a debt security as a member of either the High Grade or High Yield BMI.
According to Finance Minister Zoran Stavreski, the debt security becomes reality in Macedonia, as yet another quality, safe and fast instrument for securing payments, primarily in-tended to protect creditors.
Debt Security Principal Amount Treasury Security 9-3/4% Notes due $250 million +15 basis points 5.
In addition, two consensuses on the treatment of minority interests in certain real estate investment trusts (REITs) and accounting for the conversion of a loan into a debt security in a troubled debt restructuring are summarized.
The Federal Farm Credit Banks Funding Corporation, on behalf of the Farm Credit System, reported a reclassification of certain Systemwide debt security maturity information previously reported in the Quarterly Information Statement - Third Quarter 2002.
This listing is the third instance a debt security linked to an unrelated company's common stock has been offered publicly.
Auditors' procedures for reviewing the high-yield debt security valuations to be reported in financial statements.