Treasury STRIPS – How do they Work, Advantages & Disadvantages
What are Treasury STRIPS?Treasury Strips, also known as STRIPS (Separate Trading of Registered Interest and Principal of Securities), is a type of zero-coupon bond… Read Article
Bonds
Why Step-Up Bonds?
What are Step-up Bonds?Step-up bonds or notes are a type of bond with a coupon rate that increases over time. These securities are called… Read Article
Inverse Floaters
Meaning and DefinitionInverse floating-rate bonds, more commonly known as inverse floaters, are actually opposite to traditional floating rate bonds or floaters. To understand inverse… Read Article
Yankee Bonds
Yankee Bonds are bonds issued & traded in the United States by foreign entities. They are traded & denominated in U.S. Dollars. Yankee bonds… Read Article
Bond Valuation
Bonds are long-term debt securities issued by companies or government entities to raise debt finance. Investors who invest in bonds receive periodic interest payments,… Read Article
Floating Rate Bonds
Definition / MeaningFloating rate bonds, also known as floating-rate notes, are a type of bond characterized by a floating rate of interest. A floating… Read Article
Bond Vs. Debenture
Debenture and bond are often used as interchangeable terms. Bond is used as a broader term which may include the debentures. Let’s categorize bonds… Read Article
Sources of Debt Financing
Meaning of Debt FinancingBusiness is in continuous need of funds for working capital needs or for incurring capital expenditures. In such scenarios, when the… Read Article
Global Depository Receipt
Definition of Global Depository ReceiptGlobal Depository Receipt (GDR) is an instrument in which a company located in a domestic country issues one or more… Read Article
Convertible Bonds – Features, Types, Advantages, and Disadvantages
What are Convertible Bonds?A convertible bond is a type of debt instrument that comes with the option of getting converted into equity shares. It… Read Article
Callable Bonds
What are Callable Bonds?Callable bonds are a unique type of bond that offers flexibility to issuers while introducing additional risks and considerations for investors.… Read Article