A type of bond in which the interest and principal on the bond are guaranteed to be paid by a firm other than the issuer of the bond. |||This guarantee limits the impact on bondholders if the issuer of the bond goes into default. For example, in Canada, bonds issued by crown corporations are guaranteed by the federal government. If the issuer defaults on the debt obligation, the government is on the hook for the interest and principal payments.
Fees charged by mortgage-backed securities (MBS) providers, such as Freddie Mac and Fannie Mae, to lenders for bundling, servicing, selling and reporting MBS to investors. The main component of the guarantee fee is charged to protect against credit-related losses in the mortgage portfolio (think of it like MBS insurance), but small sub-fees are also deducted to cover internal expenses for such services as: -Managing and administering the securitized mortgage pools -Selling the MBS to investors -Reporting to investors and the SEC -Maintaining the MBS on the open market, and selling, general and administrative expense |||Commonly known in the industry as "g-fees", this small deduction (the average is 15-25 basis points in relation to the stated coupon rate) allows the corporations selling the MBS to make a profit, while benefiting both mortgage lenders and borrowers by making groups of mortgages more marketable and liquid. This helps bring investor capital into the business, allowing all participants to lower their risk exposure and enabling them to offer mortgages to borrowers of lower credit quality. The coupon rate on an MBS (also known as the pass-through rate) is the average rate on the underlying mortgages minus the guarantee fees.
A stipulation in a municipal bond indenture that requires the issuer (the municipality selling the bonds to fund a given development project) first to use revenues to pay down the issue's debt-servicing costs, delegating operating costs as second priority and likely funding them from other revenue sources. These bonds are most often tax free at the federal level. |||Like most restrictive provisions in a bond indenture, a gross revenue pledge makes the debt issue safer for bondholders. The bondholders do not have to worry about the municipality potentially misusing revenues that should have been used to pay debt-servicing costs. Generally, the added safety created by the gross revenue is a cause for the bond issue to be offered at a lower interest rate.
A tax-exempt bond which is issued by federally qualified organizations and/or municipalities for the development of brownfield sites. Brownfield sites are areas of land that are under utilized, have abandoned buildings, or are under developed. They often contain low levels of industrial pollution. Green Bonds are short-hand for Qualified Green Building and Sustainable Design Project Bonds. |||These bonds are created to encourage sustainability and the development of brownfield sites.The tax-exempt status makes purchasing a green bond a more attractive investment when compared to a comparable taxable bond. To qualify for green bond status the development must take the form of any of the following:1) At least 75% of the building is registered for LEED certification;2) The development project will receive at least $5 million from the municipality or State; and3) The building is at least one million square feet in size, or 20 acres in size.
Debt securities that a firm has the ability and intent to hold until maturity. |||These are reported at amortized cost, therefore, they are not affected by swings in the financial markets.
A warrant that requires the holder to surrender a similar bond when purchasing a new fixed-income instrument. For the warrant to be exercisable, the two bonds must have similar terms, such as maturity, yield and principal.Also known as a "wedding warrant." |||Issuing a harmless warrant provides the debt issuer with some call protection. Under a normal warrant, bond holders might all opt to buy more instruments, drastically increasing the firm's level of debt. With a harmless warrant, the original bond must be surrendered at the time of purchase, allowing the level of debt to remain constant.
A strategy that matches the durations of assets and liabilities thereby minimizing the impact of interest rates on the net worth. Also known as "multiperiod immunization". |||For example, large banks must protect their current net worth, whereas pension funds have the obligation of payments after a number of years. These institutions are both concerned about protecting the future value of their portfolios and therefore have the problem of dealing with uncertain future interest rates. By using an immunization technique, large institutions can protect (immunize) their firm from exposure to interest rate fluctuations. A perfect immunization strategy establishes a virtually zero-risk profile in which interest rate movements have no impact on the value of a firm.
An annuity contract that is purchased with one payment and has a specified payment plan which starts immediately. |||This type of annuity is sometimes used when a person turns 65 (or retirement age).
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