debt security

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 tender offers are intended to allow the company to issue new debt securities to fund the repurchase of the Securities, thereby extending the maturity date of its near-term debt securities and reducing the amounts outstanding under the higher-cost portion of its debt security portfolio.
This is the first ever listing of a debt security on NSE IFSC, NSEs international exchange at GIFT City IFSC, Gujarat.
The DSTs are entrusted with the responsibility of monitoring payment of profit, redemption of the principal amount to the debt security holders, and ensure compliance with the covenants of the respective trust deeds while reporting non-compliance, if any, to the SECP at present, the said reporting is being done manually, however, with the introduction of CDMRS, all reporting will be automated, thereby making the process for DSTs effective in terms of time and cost.
Furthermore, for protection of investors, approval of two-thirds of the outstanding debt securities holders in value has been made mandatory in case of restructuring/rescheduling of any debt security. The existing DSTs have been allowed one-year timeframe to comply with the requirements of the revised regulations.
GDNs are a debt security version of the traditional equity-based depositary receipt (DR) structure, enabling cross-border access to local debt securities for broker-dealers and institutional investors, namely in the United States for qualified institutional buyers and outside the United States for non-U.S.
The similarities and differences between the three different debt security categories are summarized in Exhibit 1.
The debt security is an efficient instrument guaranteeing collection of claims.
International Resource News-10 September 2008-Barrick Announces Debt Security Offering(C)2008 ENPublishing - http://www.enpublishing.co.uk
This SAS uses the definitions of debt security and equity security that are in FASB Statement No.
Because the current accounting for a debt security is based not only on the characteristics of the asset but also on management's plan for holding or disposing of the investment, such intent-based accounting impairs comparability.
Via debt security, he was able to raise $144 million in new capital.