above par


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Above par

See: Par.

Above Par

Describing a bond or other fixed-income security that sells for a price above its face value. For example, a bond for $20 over its face value is selling above par. Generally speaking, securities sell above par when interest rates have declined and thus new issues of bonds will pay a lower coupon. A bond that sells above par will mature at a price less than what the bondholder paid, but he/she may still make a profit, if one takes coupons into account.

above par

Of or relating to a security that sells at more than face value or par value. For example, a $1,000 par bond that trades at a market price of $1,050 is selling above par. A fixed-income security is most likely to sell above par if market rates of interest have declined since the time the security was issued. Bonds purchased above par will result in capital loss to the buyer if held to maturity and redeemed at face value. Compare below par. See also premium bond.
References in periodicals archive ?
The composition of the portfolio has improved as overall market conditions strengthened, the portfolio has no defaulted or impaired assets and a weighted average market value slightly above par.
Senior Travis Matye and sophomore Carlos Monge provide a one-two punch for the Antelopes, who finished third in the league last season, by each averaging a little above par.
Since closing, the collateral has performed within expectations, with no defaulted securities currently in the portfolio and an average market value above par.
The colourful entrepreneur's latest successfully above par business round was completed thanks to an increased offer for the courses by his Murryhill company by five pence a share, to a level of 55.
The number killed in the Northridge quake was a mere fraction of those killed in the Kobe earthquake, which occurred a year later - further proof our buildings were above par.
The class A-3 notes have been placed on Rating Watch Positive due to the trend in selling assets at or above par and the continuing delevering of the class A-1 notes.
Fitch did not incorporate into its cash flow modeling the portfolio assets trading above par, which if sold may yield gains to the portfolio and build par.
23 August 2011 - Deutsche Bahn Finance NV, a finance unit of German national railway carrier Deutsche Bahn AG, on Monday sold a NOK750m (USD138m/EUR96m) bond issue above par, Reuters reported.
The bonds are currently trading slightly above par.
75% coupon and benefits from a state guarantee, was issued above par, at 102.
The majority of these obligations are currently trading at or above par.