In finance, a bond is a type of security under which the issuer (debtor) owes the holder (creditor) a debt, and is obliged – depending on the terms – to tát provide cash flow to tát the creditor (e.g. repay the principal (i.e. amount borrowed) of the bond at the maturity date as well as interest (called the coupon) over a specified amount of time). The timing and the amount of cash flow provided varies, depending on the economic value that is emphasized upon, thus giving rise to tát different types of bonds. The interest is usually payable at fixed intervals: semiannual, annual, and less often at other periods. Thus, a bond is a khuông of loan or IOU. Bonds provide the borrower with external funds to tát finance long-term investments or, in the case of government bonds, to tát finance current expenditure.
Bonds and stocks are both securities, but the major difference between the two is that (capital) stockholders have an equity stake in a company (i.e. they are owners), whereas bondholders have a creditor stake in a company (i.e. they are lenders). As creditors, bondholders have priority over stockholders. This means they will be repaid in advance of stockholders, but will rank behind secured creditors, in the sự kiện of bankruptcy. Another difference is that bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks typically remain outstanding indefinitely. An exception is an irredeemable bond, which is a perpetuity, that is, a bond with no maturity. Certificates of deposit (CDs) or short-term commercial paper are classified as money market instruments and not bonds: the main difference is the length of the term of the instrument.
Bạn đang xem: bond là gì
The most common forms include municipal, corporate, and government bonds. Very often the bond is negotiable, that is, the ownership of the instrument can be transferred in the secondary market. This means that once the transfer agents at the ngân hàng medallion-stamp the bond, it is highly liquid on the secondary market. The price of a bond in the secondary market may differ substantially from the principal due to tát various factors in bond valuation.
In English, the word "bond" relates to tát the etymology of "bind". The use of the word "bond" in this sense of an "instrument binding one to tát pay a sum to tát another" dates from at least the 1590s.
Bonds are issued by public authorities, credit institutions, companies and supranational institutions in the primary markets. The most common process for issuing bonds is through underwriting. When a bond issue is underwritten, one or more securities firms or banks, forming a syndicate, buy the entire issue of bonds from the issuer and resell them to tát investors. The security firm takes the risk of being unable to tát sell on the issue to tát over investors. Primary issuance is arranged by bookrunners who arrange the bond issue, have direct liên hệ with investors and act as advisers to tát the bond issuer in terms of timing and price of the bond issue. The bookrunner is listed first among all underwriters participating in the issuance in the tombstone ads commonly used to tát announce bonds to tát the public. The bookrunners' willingness to tát underwrite must be discussed prior to tát any decision on the terms of the bond issue as there may be limited demand for the bonds.
In contrast, government bonds are usually issued in an auction. In some cases, both members of the public and banks may bid for bonds. In other cases, only market makers may bid for bonds. The overall rate of return on the bond depends on both the terms of the bond and the price paid. The terms of the bond, such as the coupon, are fixed in advance and the price is determined by the market.
In the case of an underwritten bond, the underwriters will charge a fee for underwriting. An alternative process for bond issuance, which is commonly used for smaller issues and avoids this cost, is the private placement bond. Bonds sold directly to tát buyers may not be tradeable in the bond market.
Historically, an alternative practice of issuance was for the borrowing government authority to tát issue bonds over a period of time, usually at a fixed price, with volumes sold on a particular day dependent on market conditions. This was called a tap issue or bond tap.
Nominal, principal, par, or face amount is the amount on which the issuer pays interest, and which, most commonly, has to tát be repaid at the over of the term. Some structured bonds can have a redemption amount which is different from the face amount and can be linked to tát the performance of particular assets.
The issuer is obligated to tát repay the nominal amount on the maturity date. As long as all due payments have been made, the issuer has no further obligations to tát the bond holders after the maturity date. The length of time until the maturity date is often referred to tát as the term or tenor or maturity of a bond. The maturity can be any length of time, although debt securities with a term of less than thở one year are generally designated money market instruments rather than thở bonds. Most bonds have a term shorter than thở 30 years. Some bonds have been issued with terms of 50 years or more, and historically there have been some issues with no maturity date (irredeemable). In the market for United States Treasury securities, there are four categories of bond maturities:
- short term (bills): maturities between zero and one year;
- medium term (notes): maturities between one and ten years;
- long term (bonds): maturities between ten and thirty years;
- perpetual: no maturity period.
The coupon is the interest rate that the issuer pays to tát the holder. For fixed rate bonds, the coupon is fixed throughout the life of the bond. For floating rate notes, the coupon varies throughout the life of the bond and is based on the movement of a money market reference rate (historically this was generally LIBOR, but with its discontinuation the market reference rate has transitioned to tát SOFR).
Historically, coupons were physical attachments to tát the paper bond certificates, with each coupon representing an interest payment. On the interest due date, the bondholder would hand in the coupon to tát a ngân hàng in exchange for the interest payment. Today, interest payments are almost always paid electronically. Interest can be paid at different frequencies: generally semi-annual (every 6 months) or annual.
The yield is the rate of return received from investing in the bond. It usually refers to tát one of the following:
- The current yield, or running yield: the annual interest payment divided by the current market price of the bond (often the clean price).
- The yield to tát maturity (or redemption yield, as it is termed in the United Kingdom) is an estimate of the total rate of return anticipated to tát be earned by an investor who buys a bond at a given market price, holds it to tát maturity, and receives all interest payments and the capital redemption on schedule. It is a more useful measure of the return on a bond than thở current yield because it takes into trương mục the present value of future interest payments and principal repaid at maturity. The yield to tát maturity or redemption yield calculated at the time of purchase is not necessarily the return the investor will actually earn, as finance scholars Dr. Annette Thau and Dr. Frank Fabozzi have noted. The yield to tát maturity will be realized only under certain conditions, including: 1) all interest payments are reinvested rather than thở spent, and 2) all interest payments are reinvested at the yield to tát maturity calculated at the time the bond is purchased. This distinction may not be a concern to tát bond buyers who intend to tát spend rather than thở reinvest the coupon payments, such as those practicing asset/liability matching strategies.
The quality of the issue refers to tát the probability that the bondholders will receive the amounts promised at the due dates. In other words, credit quality tells investors how likely the borrower is going to tát mặc định. This will depend on a wide range of factors. High-yield bonds are bonds that are rated below investment grade by the credit rating agencies. As these bonds are riskier than thở investment grade bonds, investors expect to tát earn a higher yield. These bonds are also called junk bonds.
The market price of a tradable bond will be influenced, among other factors, by the amounts, currency and timing of the interest payments and capital repayment due, the quality of the bond, and the available redemption yield of other comparable bonds which can be traded in the markets.
The price can be quoted as clean or dirty. "Dirty" includes the present value of all future cash flows, including accrued interest, and is most often used in Europe. "Clean" does not include accrued interest, and is most often used in the U.S.
The issue price at which investors buy the bonds when they are first issued will typically be approximately equal to tát the nominal amount. The net proceeds that the issuer receives are thus the issue price, less issuance fees. The market price of the bond will vary over its life: it may trade at a premium (above par, usually because market interest rates have fallen since issue), or at a discount (price below par, if market rates have risen or there is a high probability of mặc định on the bond).
- Indentures and Covenants—An indenture is a formal debt agreement that establishes the terms of a bond issue, while covenants are the clauses of such an agreement. Covenants specify the rights of bondholders and the duties of issuers, such as actions that the issuer is obligated to tát perform or is prohibited from performing. In the U.S., federal and state securities and commercial laws apply to tát the enforcement of these agreements, which are construed by courts as contracts between issuers and bondholders. The terms may be changed only with great difficulty while the bonds are outstanding, with amendments to tát the governing document generally requiring approval by a majority (or super-majority) vote of the bondholders.
- Optionality: Occasionally a bond may contain an embedded option; that is, it grants option-like features to tát the holder or the issuer:
- Callability—Some bonds give the issuer the right to tát repay the bond before the maturity date on the Điện thoại tư vấn dates; see Điện thoại tư vấn option. These bonds are referred to tát as callable bonds. Most callable bonds allow the issuer to tát repay the bond at par. With some bonds, the issuer has to tát pay a premium, the so-called Điện thoại tư vấn premium. This is mainly the case for high-yield bonds. These have very strict covenants, restricting the issuer in its operations. To be không tính tiền from these covenants, the issuer can repay the bonds early, but only at a high cost.
- Puttability—Some bonds give the holder the right to tát force the issuer to tát repay the bond before the maturity date on the put dates; see put option. These are referred to tát as retractable or putable bonds.
- Call dates and put dates—the dates on which callable and putable bonds can be redeemed early. There are four main categories:
- A Bermudan callable has several Điện thoại tư vấn dates, usually coinciding with coupon dates.
- A European callable has only one Điện thoại tư vấn date. This is a special case of a Bermudan callable.
- An American callable can be called at any time until the maturity date.
- A death put is an optional redemption feature on a debt instrument allowing the beneficiary of the estate of a deceased bondholder to tát put (sell) the bond back to tát the issuer at face value in the sự kiện of the bondholder's death or legal incapacitation. This is also known as a "survivor's option".
- Sinking fund provision of the corporate bond indenture requires a certain portion of the issue to tát be retired periodically. The entire bond issue can be liquidated by the maturity date; if not, the remainder is called balloon maturity. Issuers may either pay to tát trustees, which in turn Điện thoại tư vấn randomly selected bonds in the issue, or, alternatively, purchase bonds in the open market, then return them to tát trustees.
- Bonds are often identified by their international securities identification number, or ISIN, which is a 12-digit alphanumeric code that uniquely identifies debt securities.
Bonds can be categorised in several ways, such as the type of issuer, the currency, the term of the bond (length of time to tát maturity) and the conditions applying to tát the bond. The following descriptions are not mutually exclusive, and more than thở one of them may apply to tát a particular bond:
The nature of the issuer and the security offered
The nature of the issuer will affect the security (certainty of receiving the contracted payments) offered by the bond, and sometimes the tax treatment.
Xem thêm: circus là gì
- Government bonds, often also called treasury bonds, are issued by a sovereign national government. Some countries have repeatedly defaulted on their government bonds, while some other treasury bonds have been treated as risk-free and not exposed to tát mặc định risk. Risk-free bonds are the safest bonds, with the lowest interest rate. A Treasury bond is backed by the "full faith and credit" of the relevant government. However, in reality most or all government bonds bởi carry some residual risk. This is indicated by
- the award by rating agencies of a rating below the top rating,
- bonds issued by different national governments, such as various thành viên states of the European Union, all denominated in Euros, offering different market yields reflecting their different risks.
- A supranational bond, also known as a "supra", is issued by a supranational organisation lượt thích the World Bank. They have a very good credit rating, similar to tát that on national government bonds.
- A municipal bond issued by a local authority or subdivision within a country, for example a đô thị or a federal state. These will to tát varying degrees carry the backing of the national government. In the United States, such bonds are exempt from certain taxes. For example, Build America Bonds (BABs) are a khuông of municipal bond authorized by the American Recovery and Reinvestment Act of 2009. Unlike traditional US municipal bonds, which are usually tax exempt, interest received on BABs is subject to tát federal taxation. However, as with municipal bonds, the bond is tax-exempt within the US state where it is issued. Generally, BABs offer significantly higher yields than thở standard municipal bonds.
- A revenue bond is a special type of municipal bond distinguished by its guarantee of repayment solely from revenues generated by a specified revenue-generating entity associated with the purpose of the bonds. Revenue bonds are typically "non-recourse", meaning that in the sự kiện of mặc định, the bond holder has no recourse to tát other governmental assets or revenues.
- A War bond is a bond issued by a government to tát fund military operations and other expenditure during wartime. It will often have a low return rate, and ví can be bought due a lack of opportunities or patriotism.
- Corporate bonds are issued by corporations.
- High-yield bonds (junk bonds) are bonds that are rated below investment grade by the credit rating agencies, because they are uncertain that the issuer will be able or willing to tát pay the scheduled interest payments and/or redeem the bond at maturity. As these bonds are much riskier than thở investment grade bonds, investors expect to tát earn a much higher yield.
- A Climate bond is a bond issued by a government or corporate entity in order to tát raise finance for climate change mitigation- or adaptation-related projects or programmes. For example, in 2021 the UK government started to tát issue "green bonds".
- Asset-backed securities are bonds whose interest and principal payments are backed by underlying cash flows from other assets. Examples of asset-backed securities are mortgage-backed securities (MBSs), collateralized mortgage obligations (CMOs), and collateralized debt obligations (CDOs).
- Covered bonds are backed by cash flows from mortgages or public sector assets. Unlike asset-backed securities, the assets for such bonds remain on the issuer's balance sheet.
- Subordinated bonds are those that have a lower priority than thở other bonds of the issuer in case of liquidation. In case of bankruptcy, there is a hierarchy of creditors. First the liquidator is paid, then government taxes, etc. The first bond holders in line to tát be paid are those holding what are called senior bonds. After they have been paid, the subordinated bond holders are paid. As a result, the risk is higher. Therefore, subordinated bonds usually have a lower credit rating than thở senior bonds. The main examples of subordinated bonds can be found in bonds issued by banks and asset-backed securities. The latter are often issued in tranches. The senior tranches get paid back first, the subordinated tranches later.
- Social impact bonds are an agreement for public sector entities to tát pay back private investors after meeting verified improved social outcome goals that result in public sector savings from innovative social program pilot projects.
The term of the bond
- Most bonds are structured to tát mature on a stated date, when the principal is due to tát be repaid, and interest payments cease. Typically, a bond with term to tát maturity of under five years would be called a short bond; 5 to tát 15 years would be "medium", and over 15 years would be "long"; but the numbers may vary in different markets.
- Perpetual bonds are also often called perpetuities or 'Perps'. They have no maturity date. Historically the most famous of these were the UK Consols (there were also some other perpetual UK government bonds, such as War Loan, Treasury Annuities and undated Treasuries). Some of these were issued back in 1888 or earlier. There had been insignificant quantities of these outstanding for decades, and they have now been fully repaid. Some ultra-long-term bonds (sometimes a bond can last centuries: West Shore Railroad issued a bond which matures in 2361 (i.e. 24th century)) are virtually perpetuities from a financial point of view, with the current value of principal near zero.
- The Methuselah is a type of bond with a maturity of 50 years or longer. The term is a reference to tát Methuselah, the oldest person whose age is mentioned in the Hebrew Bible. The issuance of Methuselahs has been increasing in recent years due to tát demand for longer-dated assets from pension plans, particularly in France and the United Kingdom. Issuance of Methuselahs in the United States has been limited, however: the U.S. Treasury does not currently issue Treasuries with maturities beyond 30 years, which would serve as a reference level for any corporate issuance.
- A Serial bond is a bond that matures in installments over a period of time. For example, a $100,000, 5-year serial bond might pay $20,000 per year.
The conditions applying to tát the bond
- Fixed rate bonds have interest payments ("coupon"), usually semi-annual, that remains constant throughout the life of the bond. Other variations include stepped-coupon bonds, whose coupon increases during the life of the bond.
- Floating rate notes (FRNs, floaters) have a variable coupon that is linked to tát a reference rate of interest, such as Libor or Euribor. For example, the coupon may be defined as three-month USD LIBOR + 0.20%. The coupon rate is recalculated periodically, typically every one or three months.
- Zero-coupon bonds (zeros) pay no regular interest. They are issued at a substantial discount to tát par value, ví that the interest is effectively rolled up to tát maturity (and usually taxed as such). The bondholder receives the full principal amount on the redemption date. An example of zero coupon bonds is Series E savings bonds issued by the U.S. government. Zero-coupon bonds may be created from fixed rate bonds by a financial institution separating ("stripping off") the coupons from the principal. This can create a "Principal Only" zero-coupon bond and an "Interest Only" (IO) strip bond from the original fixed income bond.
- Inflation-indexed bonds (linkers) (US) or index-linked bonds (UK), in which the principal amount and the interest payments are indexed to tát the level of consumer prices. The interest rate is normally lower than thở for fixed rate bonds with a comparable maturity (this relationship briefly reversed for short-term UK bonds in December 2008). Higher inflation rates increase the nominal principal and coupon amounts paid on these bonds. The United Kingdom was the first sovereign issuer to tát issue inflation-linked gilts in the 1980s. Treasury Inflation-Protected Securities (TIPS) and I-bonds are examples of inflation-linked bonds issued by the U.S. government.
- Other indexed bonds, for example equity-linked notes and bonds indexed on a business indicator (income, added value) or on a country's GDP.
- Lottery bonds are issued by European and other states. Interest is paid as on a traditional fixed rate bond, but the issuer will redeem randomly selected individual bonds within the issue according to tát a schedule. Some of these redemptions will be for a higher value than thở the face value of the bond.
Bonds with embedded options for the holder
- Convertible bonds let a bondholder exchange a bond to tát a number of shares of the issuer's common stock. These are known as hybrid securities, because they combine equity and debt features.
- Exchangeable bonds allows for exchange to tát shares of a corporation other than thở the issuer.
Documentation and evidence of title
- A bearer bond is an official certificate issued without a named holder. In other words, the person who has the paper certificate can claim the value of the bond. Often they are registered by a number to tát prevent counterfeiting, but may be traded lượt thích cash. Bearer bonds are very risky because they can be lost or stolen. In some countries they were historically popular because the owner could not be traced by the tax authorities. For example, after federal income tax began in the United States, bearer bonds were seen as an opportunity to tát conceal income or assets. U.S. corporations stopped issuing bearer bonds in the 1960s, the U.S. Treasury stopped in 1982, and state and local tax-exempt bearer bonds were prohibited in 1983.
- A registered bond is a bond whose ownership (and any subsequent purchaser) is recorded by the issuer, or by a transfer agent. Interest payments and the principal upon maturity are sent to tát the registered owner. The owner can continue to tát receive interest with a duplicated bond in case of a loss. However, the bond is not easily transferable to tát other people. Registered bonds seldom appeared in the market for trading. The traceability of the bonds means it has a minor effect on bond prices. Once a new owner acquired the bond, the old bond must be sent to tát the corporation or agent for cancellation and for issuance of a new bond. It is the opposite of a bearer bond.
- A book-entry bond is a bond that does not have a paper certificate. As physically processing paper bonds and interest coupons became more expensive, issuers (and banks that used to tát collect coupon interest for depositors) have tried to tát discourage their use. Some book-entry bond issues bởi not offer the option of a paper certificate, even to tát investors who prefer them.
- Retail bonds are a type of corporate bond mostly designed for ordinary investors.
Some companies, banks, governments, and other sovereign entities may decide to tát issue bonds in foreign currencies as the foreign currency may appear to tát potential investors to tát be more stable and predictable than thở their domestic currency. Issuing bonds denominated in foreign currencies also gives issuers the ability to tát access investment capital available in foreign markets.
A downside is that the government loses the option to tát reduce its bond liabilities by inflating its domestic currency.
The proceeds from the issuance of these bonds can be used by companies to tát break into foreign markets, or can be converted into the issuing company's local currency to tát be used on existing operations through the use of foreign exchange swap hedges. Foreign issuer bonds can also be used to tát hedge foreign exchange rate risk. Some foreign issuer bonds are called by their nicknames, such as the "samurai bond". These can be issued by foreign issuers looking to tát diversify their investor base away from domestic markets. These bond issues are generally governed by the law of the market of issuance, e.g., a samurai bond, issued by an investor based in Europe, will be governed by Japanese law. Not all of the following bonds are restricted for purchase by investors in the market of issuance.
The market price of a bond is the present value of all expected future interest and principal payments of the bond, here discounted at the bond's yield to tát maturity (i.e. rate of return). That relationship is the definition of the redemption yield on the bond, which is likely to tát be close to tát the current market interest rate for other bonds with similar characteristics, as otherwise there would be arbitrage opportunities. The yield and price of a bond are inversely related ví that when market interest rates rise, bond prices fall and vice versa. For a discussion of the mathematics see Bond valuation.
The bond's market price is usually expressed as a percentage of nominal value: 100% of face value, "at par", corresponds to tát a price of 100; prices can be above par (bond is priced at greater than thở 100), which is called trading at a premium, or below par (bond is priced at less than thở 100), which is called trading at a discount. The market price of a bond may be quoted including the accrued interest since the last coupon date. (Some bond markets include accrued interest in the trading price and others add it on separately when settlement is made.) The price including accrued interest is known as the "full" or "dirty price". (See also Accrual bond.) The price excluding accrued interest is known as the "flat" or "clean price".
Most government bonds are denominated in units of $1000 in the United States, or in units of £100 in the United Kingdom. Hence, a deep discount US bond, selling at a price of 75.26, indicates a selling price of $752.60 per bond sold. (Often, in the US, bond prices are quoted in points and thirty-seconds of a point, rather than thở in decimal khuông.) Some short-term bonds, such as the U.S. Treasury bill, are always issued at a discount, and pay par amount at maturity rather than thở paying coupons. This is called a discount bond.
Although bonds are not necessarily issued at par (100% of face value, corresponding to tát a price of 100), their prices will move towards par as they approach maturity (if the market expects the maturity payment to tát be made in full and on time) as this is the price the issuer will pay to tát redeem the bond. This is referred to tát as "pull to tát par". At the time of issue of the bond, the coupon paid, and other conditions of the bond, will have been influenced by a variety of factors, such as current market interest rates, the length of the term and the creditworthiness of the issuer. These factors are likely to tát change over time, ví the market price of a bond will vary after it is issued. (The position is a bit more complicated for inflation-linked bonds.)
The interest payment ("coupon payment") divided by the current price of the bond is called the current yield (this is the nominal yield multiplied by the par value and divided by the price). There are other yield measures that exist such as the yield to tát first Điện thoại tư vấn, yield to tát worst, yield to tát first par Điện thoại tư vấn, yield to tát put, cash flow yield and yield to tát maturity. The relationship between yield and term to tát maturity (or alternatively between yield and the weighted mean term allowing for both interest and capital repayment) for otherwise identical bonds derives the yield curve, a graph plotting this relationship.
If the bond includes embedded options, the valuation is more difficult and combines option pricing with discounting. Depending on the type of option, the option price as calculated is either added to tát or subtracted from the price of the "straight" portion. See further under Bond option § Embedded options. This total is then the value of the bond. More sophisticated lattice- or simulation-based techniques may (also) be employed.
Bond markets, unlike stock or share markets, sometimes bởi not have a centralized exchange or trading system. Rather, in most developed bond markets such as the U.S., nhật bản and western Europe, bonds trade in decentralized, dealer-based over-the-counter markets. In such a market, liquidity is provided by dealers and other market participants committing risk capital to tát trading activity. In the bond market, when an investor buys or sells a bond, the counterparty to tát the trade is almost always a ngân hàng or securities firm acting as a dealer. In some cases, when a dealer buys a bond from an investor, the dealer carries the bond "in inventory", i.e. holds it for their own trương mục. The dealer is then subject to tát risks of price fluctuation. In other cases, the dealer immediately resells the bond to tát another investor.
Bond markets can also differ from stock markets in that, in some markets, investors sometimes bởi not pay brokerage commissions to tát dealers with whom they buy or sell bonds. Rather, the dealers earn revenue by means of the spread, or difference, between the price at which the dealer buys a bond from one investor—the "bid" price—and the price at which he or she sells the same bond to tát another investor—the "ask" or "offer" price. The bid/offer spread represents the total transaction cost associated with transferring a bond from one investor to tát another.
Investing in bonds
Bonds are bought and traded mostly by institutions lượt thích central banks, sovereign wealth funds, pension funds, insurance companies, hedge funds, and banks. Insurance companies and pension funds have liabilities which essentially include fixed amounts payable on predetermined dates. They buy the bonds to tát match their liabilities, and may be compelled by law to tát bởi this. Most individuals who want to tát own bonds bởi ví through bond funds. Still, in the U.S., nearly 10% of all bonds outstanding are held directly by households.
The volatility of bonds (especially short and medium dated bonds) is lower than thở that of equities (stocks). Thus, bonds are generally viewed as safer investments than thở stocks, but this perception is only partially correct. Bonds bởi suffer from less day-to-day volatility than thở stocks, and bonds' interest payments are sometimes higher than thở the general level of dividend payments. Bonds are often liquid – it is often fairly easy for an institution to tát sell a large quantity of bonds without affecting the price much, which may be more difficult for equities – and the comparative certainty of a fixed interest payment twice a year and a fixed lump sum at maturity is attractive. Bondholders also enjoy a measure of legal protection: under the law of most countries, if a company goes bankrupt, its bondholders will often receive some money back (the recovery amount), whereas the company's equity stock often ends up valueless. However, bonds can also be risky but less risky than thở stocks:
- Fixed rate bonds are subject to tát interest rate risk, meaning that their market prices will decrease in value when the generally prevailing interest rates rise. Since the payments are fixed, a decrease in the market price of the bond means an increase in its yield. When the market interest rate rises, the market price of bonds will fall, reflecting investors' ability to tát get a higher interest rate on their money elsewhere—perhaps by purchasing a newly issued bond that already features the newly higher interest rate. This does not affect the interest payments to tát the bondholder, ví long-term investors who want a specific amount at the maturity date bởi not need to tát worry about price swings in their bonds and bởi not suffer from interest rate risk.
Bonds are also subject to tát various other risks such as Điện thoại tư vấn and prepayment risk, credit risk, reinvestment risk, liquidity risk, sự kiện risk, exchange rate risk, volatility risk, inflation risk, sovereign risk and yield curve risk. Again, some of these will only affect certain classes of investors.
Price changes in a bond will immediately affect mutual funds that hold these bonds. If the value of the bonds in their trading portfolio falls, the value of the portfolio also falls. This can be damaging for professional investors such as banks, insurance companies, pension funds and asset managers (irrespective of whether the value is immediately "marked to tát market" or not). If there is any chance a holder of individual bonds may need to tát sell their bonds and "cash out", interest rate risk could become a real problem, conversely, bonds' market prices would increase if the prevailing interest rate were to tát drop, as it did from 2001 through 2003. One way to tát quantify the interest rate risk on a bond is in terms of its duration. Efforts to tát control this risk are called immunization or hedging.
- Bond prices can become volatile depending on the credit rating of the issuer – for instance if the credit rating agencies lượt thích Standard & Poor's and Moody's upgrade or downgrade the credit rating of the issuer. An unanticipated downgrade will cause the market price of the bond to tát fall. As with interest rate risk, this risk does not affect the bond's interest payments (provided the issuer does not actually default), but puts at risk the market price, which affects mutual funds holding these bonds, and holders of individual bonds who may have to tát sell them.
- A company's bondholders may lose much or all their money if the company goes bankrupt. Under the laws of many countries (including the United States and Canada), bondholders are in line to tát receive the proceeds of the sale of the assets of a liquidated company ahead of some other creditors. Bank lenders, deposit holders (in the case of a deposit taking institution such as a bank) and trade creditors may take precedence.
There is no guarantee of how much money will remain to tát repay bondholders. As an example, after an accounting scandal and a Chapter 11 bankruptcy at the giant telecommunications company Worldcom, in 2004 its bondholders ended up being paid 35.7 cents on the dollar. In a bankruptcy involving reorganization or recapitalization, as opposed to tát liquidation, bondholders may over up having the value of their bonds reduced, often through an exchange for a smaller number of newly issued bonds.
Xem thêm: stand in for là gì
- Some bonds are callable, meaning that even though the company has agreed to tát make payments plus interest towards the debt for a certain period of time, the company can choose to tát pay off the bond early. This creates reinvestment risk, meaning the investor is forced to tát find a new place for their money, and the investor might not be able to tát find as good a giảm giá, especially because this usually happens when interest rates are falling.
A number of bond indices exist for the purposes of managing portfolios and measuring performance, similar to tát the S&P 500 or Russell Indexes for stocks. The most common American benchmarks are the Bloomberg Barclays US Aggregate (ex Lehman Aggregate), Citigroup BIG and Merrill Lynch Domestic Master. Most indices are parts of families of broader indices that can be used to tát measure global bond portfolios, or may be further subdivided by maturity or sector for managing specialized portfolios.
- ^ a b c Chorafas, Dimitris N (2005). The management of bond investments and trading of debt. Elsevier Butterworth-Heinemann. pp. 49–50. ISBN 9780080497280. Archived from the original on 26 April 2023. Retrieved 16 January 2023.
- ^ Bonds Archived 2012-07-18 at the Wayback Machine, accessed: 2012-06-08
- ^ Harper, Douglas. "bond". Online Etymology Dictionary. Retrieved 2017-07-23.
- ^ William Shakespeare, The Merchant of Venice Archived 2022-05-23 at the Wayback Machine (c. 1596–1599), Act I, scene iii: "Three thousand ducats. I think I may take his bond". John Heminges and Henry Condell (eds.), Mr. William Shakespeare's Comedies, Histories, & Tragedies (London: Blount and Jaggard, 1623).
- ^ "UK Debt Management Office". Dmo.gov.uk. Archived from the original on 2012-04-04. Retrieved 2012-03-22.
- ^ "Affordable Housing Finance". Housingfinance.com. Archived from the original on 2012-03-12. Retrieved 2012-03-22.
- ^ Thau, Annette (2001). The Bond Book (Revised ed.). New York: McGraw-Hill. p. 56. ISBN 0-07-135862-5.
- ^ Thau op cit p. 58-59.
- ^ Fabozzi, Frank J. (1996). Bond Markets, Analysis and Strategies (third ed.). Upper Saddle River, NJ: Prentice Hall. p. 44. ISBN 0-13-339151-5.
- ^ a b c Thau, Annette (2010). The Bond Book, Third Edition: Everything Investors Need to tát Know About Treasuries, Municipals, GNMAs, Corporates, Zeros, Bond Funds, Money Market Funds, and More (Third ed.). McGraw Hill Professional. p. 5. ISBN 9780071713092. Archived from the original on 26 April 2023. Retrieved 8 February 2023.
- ^ Anne Padieu "Quand les États sont tentés par la dette «Mathusalem» " Agence France-Presse à Paris / Le Devoir, 23 août 2019 Archived 2019-08-29 at the Wayback Machine: discussion of 100-year maturity bonds (in French).
- ^ Eason, Yla (June 6, 1983). "Final Surge in Bearer Bonds" New York Times.
- ^ Quint, Michael (August 14, 1984). "Elements in Bearer Bond Issue". New York Times.
- ^ no byline (July 18, 1984). "Book Entry Bonds Popular". New York Times.
- ^ "EnQuest CFO Swinney Issues First Industrial Retail Bond - CFO Insight". Archived from the original on February 9, 2013. Retrieved February 6, 2013.
- ^ "More worthless WorldCom stock". bizjournals.com. Archived from the original on 2020-09-24. Retrieved 2018-02-09.
Wikimedia Commons has truyền thông media related to tát Bonds.
- Bonds links at Curlie
- Estate planner victimized terminally ill, FBI
- Disadvantages of Bond, Digital Marketing Finance
- Bonds vs Stocks Which is Better?, An ultimate judgment of which better profitable bonds or stocks.
- How to tát invest in bonds, Quick initiation guide.