Tradable Debt Instrument
(Redirected from Debt Instrument)
Jump to navigation
Jump to search
A Tradable Debt Instrument is a debt security that is a tradable financial instrument (tradable in a debt market).
- AKA: Tradable Debt Security.
- Context:
- It can range from being a Secured Debt Instrument to being an Unsecured Debt Instrument.
- It can range from being a Short-Term Debt Instrument to being an Long-Term Debt Instrument.
- It can have a Maturity Date.
- Example(s):
- a Tradable Government Bond, such as U.S. Government Bond.
- a Commercial Paper.
- …
- Counter-Example(s):
- See: Stock Equity Instrument.
References
2013
- http://www.investopedia.com/terms/d/debtinstrument.asp
- QUOTE: A paper or electronic obligation that enables the issuing party to raise funds by promising to repay a lender in accordance with terms of a contract. Types of debt instruments include notes, bonds, certificates, mortgages, leases or other agreements between a lender and a borrower. ...
... Debt instruments are a way for markets and participants to easily transfer the ownership of debt obligations from one party to another. Debt obligation transferability increases liquidity and gives creditors a means of trading debt obligations on the market. Without debt instruments acting as a means to facilitate trading, debt is an obligation from one party to another. When a debt instrument is used as a medium to facilitate debt trading, debt obligations can be moved from one party to another quickly and efficiently.
- QUOTE: A paper or electronic obligation that enables the issuing party to raise funds by promising to repay a lender in accordance with terms of a contract. Types of debt instruments include notes, bonds, certificates, mortgages, leases or other agreements between a lender and a borrower. ...