A company or individual who owes money. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower. If the debt is in the form of securities, such as bonds, the debtor is referred to as an issuer. |||It is not a crime to fail to pay a debt. Except in certain bankruptcy situations, debtors can choose to pay debts in any priority they choose. But if you've failed to pay a debt, you have broken a contract or agreement between you and a creditor. Generally, most oral and written agreements for the repayment of consumer debt - debts for personal, family or household purposes secured primarily by a person's residence - are enforceable. However, most debts for business or commercial purposes must be in writing to be enforceable. If the agreement requires the debtor to pay a certain amount of money, then the creditor does not have to accept a lesser amount. Also, if there was no actual agreement but the creditor has loaned money, performed services or provided the debtor with a product, that debtor must pay the creditor.
A refinancing deal in which a debt holder gets an equity position in exchange for cancellation of the debt. |||There are several reasons why a company may want to swap debt for equity. For example, a firm may be in financial trouble and a debt/equity swap could help avoid bankruptcy, or the company may want to change capital structure to take advantage of current stock valuation.Covenants in the bond indenture may prevent a swap from happening without consent.
When a firm retires all or a portion of its debt securities by making an offer to its debtholders to repurchase a predetermined number of bonds at a specified price and during a set period of time. Firms may use a debt tender offer as a mechanism for capital restructuring or refinancing. |||For example, a firm may have issued bonds during a time when interest rates were high. If interest rates have come down significantly, the firm may want to conduct a new bond offering at a lower rate and then use the proceeds to conduct a debt tender offering in order to buy back the more expensive bonds as a way of cutting costs.Furthermore, a highly leveraged firm may also wish to use its retained earnings to buy back bonds in order lower its debt-to-equity ratio. Doing so will give the company a greater margin of safety against bankruptcy because the company will be paying less interest.
Cash required over a given period for the repayment of interest and principal on a debt. |||Your monthly mortgage payments are a good example of debt service.
A derivative that is attached to a security and gives the holder the right to purchase an underlying security at a specific price within a certain time frame. A detachable warrant is often combined with various forms of debt offerings and can be removed by the holder and sold in the secondary market separately. |||Many companies choose detachable warrants when issuing bonds because it makes a debt offering more attractive and can be an effective method of raising new capital. The exposure to the right given by the detachable warrant can often gain the attention of investors who do not usually participate in the fixed-income markets. A detachable warrant can be traded independently of the package with which it was offered, and is similar to a call option.
An individual or firm that facilitates the placement of investors' deposits with insured depository institutions. Deposit brokers offer investors an assortment of fixed-term investment products, which earn low-risk returns. |||Deposit brokers sell financial instruments such as guaranteed investment certificates, term deposits, government bonds and certificates of deposit. They are similar to stock brokers, but offer alternatives to investing only in equity. While stock brokers must pass the Series 7 to sell securities, deposit brokers may not need regulatory approval to sell fixed-term securities.
A fixed-income investment with a floating rate tied to a specific index with less than a one for one payback ratio. |||These investment products are generally linked to different rates like the Fed Fund rate, LIBOR, or Treasury rates. This provides investors with the ability to match the differing cashflows of their assets and liabilities.
Securities that are issued in the form of a paper certificate as opposed to book-entry securities which are electronic entries into a computer. Examples of definitive securities include bearer and registered bonds. |||Con artists use scams offering the opportunity to "rent" or "lease" Treasury securities. These assets typically exist in book entry form and allow the scam to appear legitimate while providing the con artist with ample excuses when asked to present proof of ownership.
登录
工商服务
危机公关
金融律师
app开发
财税服务
金融牌照
网站建设
知识产权
企业征信
审计评估