Debt Asset
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A Debt Asset is a financial asset where the debtor party promises to repay a lender in accordance with terms of a contract.
- AKA: Fixed-Income Debt Asset.
- Context:
- It can range from being a Non-Tradable Debt Security to being a Tradable Debt Security (that can be sold in a debt market).
- Example(s):
- a Bond Security, such as a government bond, or a corporate bond.
- a Collateralized Security.
- …
- Counter-Example(s):
- a Stock Security.
- Chas.
- See: Treasury Stock, Government Investment, Debenture, Profit-Sharing Agreement, Royalties, Lease, Collateral (Finance), Trust Certificate (Finance).
References
2014
- (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Security_(finance) Retrieved:2014-6-23.
- A security is a tradable financial asset of any kind. [1] Securities are broadly categorized into:
- debt securities, (e.g., banknotes, bonds and debentures)
- equity securities, (e.g., common stocks)
- derivative securities, (e.g., forwards, futures, options and swaps).
- A security is a tradable financial asset of any kind. [1] Securities are broadly categorized into:
- ↑ The United States Securities Exchange Act of 1934 defines a security as: "Any note, stock, treasury stock, bond, debenture, certificate of interest or participation in any profit-sharing agreement or in any oil, gas, or other mineral royalty or lease, any collateral trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit, for a security, any put, call, straddle, option, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or in general, any instrument commonly known as a "security"; or any certificate of interest or participation in, temporary or interim certificate for, receipt for, or warrant or right to subscribe to or purchase, any of the foregoing; but shall not include currency or any note, draft, bill of exchange, or banker's acceptance which has a maturity at the time of issuance of not exceeding nine months, exclusive of days of grace, or any renewal thereof the maturity of which is likewise limited."
2013
- http://www.investopedia.com/terms/d/debtsecurity.asp
- QUOTE: Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount borrowed), interest rate and maturity/renewal date. Debt securities include government bonds, corporate bonds, CDs, municipal bonds, preferred stock, collateralized securities (such as CDOs, CMOs, GNMAs) and zero-coupon securities.
The interest rate on a debt security is largely determined by the perceived repayment ability of the borrower; higher risks of payment default almost always lead to higher interest rates to borrow capital.
Also known as “fixed-income securities."
- QUOTE: Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount borrowed), interest rate and maturity/renewal date. Debt securities include government bonds, corporate bonds, CDs, municipal bonds, preferred stock, collateralized securities (such as CDOs, CMOs, GNMAs) and zero-coupon securities.