underlying debt

Underlying debt

Municipal bonds issued by government entities but under the control of larger government entities and for which the larger entity shares the credit responsibility.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Underlying Debt

A bond or other debt issued by a municipality and guaranteed by another government entity. For example, if a state guarantees payment, at least in part, for municipal bonds issued by cities in that state, those bonds are called the state's underlying debt. This debt is usually lower risk than other debts.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

underlying debt

Debt of a municipal organization for which a higher municipal organization is at least partially responsible. For example, debt of a hospital authority may be guaranteed by a county such that the hospital debt is underlying the debt of the county. Compare overlapping debt.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
On completion, all outstanding debt from Range and its subsidiaries to LandOcean and its subsidiaries (including the US$20 million convertible note) will be fully repaid by offsetting against the consideration and all underlying debt agreements will be terminated.
A credit-default swap contract is similar to insurance on a bond, but the purchaser doesn't need to own any of the underlying debt to buy one.
DMS should assume underlying debt management, total debt stock, sources of loans, principal risks associated with loans, analysis of the sustainability of debt and debt servicing framework.
"In addition, both the IMF and the World Bank are called on to better monitor the kinds of underlying debt for the loans that they're giving out," the official noted.
Yet before the new government took office, Italy's cyclically adjusted fiscal deficit as opposed to its underlying debt position was often rather restrained compared to the rest of the eurozone, as well as the other members of the G-7 (Canada, France, Germany, Japan, the United Kingdom and the United States).
Despite the significant increase of public debt as a result of the government injecting e1/43.2 billion into the Cyprus Cooperative Bank to facilitate its resolution and the sale of its performing assets, the underlying debt dynamics remain favourable.
Such interest must be paid or accrued on the purchase of motor vehicles held for sale or lease, as long as the motor vehicles secure the underlying debt. Motor vehicles include self-propelled vehicles designed to transport individuals or property on public roadways, boats, and farm machinery and equipment.
Contrarily trying to prove that all the underlying debt contracted to sustain this growth will have an adverse impact on the country's resources requires detailed mathematical workings based on complicated assumptions which nobody even wants to understand.
We're seeing an increasing number of people on low income, people with underlying debt, so even if this cause of the financial crisis is resolved, they can find themselves in this situation for a long time.
Intuitively, the better approach is to prevent an arrest action from occurring in the first place by providing creditors with alternative options or collateral to cover the underlying debt. Personal guarantees, such as escrow accounts and Letters of Undertaking ('LOU'), are not accepted by the court at the moment; however this does not completely rule them out of practice.
The underlying debt securities are listed on the Bermuda Stock Exchange, which assist in financing Centaur Group's mining related projects.