List of Bonds Articles

Bank deposits, Mutual Funds, Stocks, Futures and Options–investors always seek new investment avenues.

The government issues these bonds to raise debt money from the general public. It raises this money to meet its various expenditure requirements.

The recent market correction has shifted the choice of investment from equity to debt instruments. Irrespective of the type, investment decisions are a trade-off between the potential rewards and risk involved and each investment is subject to some risk.

The bond market has flourished rapidly over time. There are varieties of bonds in the market and one of the less risky ones is government bonds.

However, one thing that is usually missing when looking at a company’s success is their cash flow or how much capital they have to expand. Expansion is the fundamental factor for a company to ensure sustainability and increased profitability.

Some prefer to invest in simple financial instruments such as Mutual Funds, while some look towards high-risk, high-reward instruments such as Equity.

Though issuing equity is a popular way for organizations to raise money, some organizations consider issuing debt securities, too.

People invest in two of the most widely invested asset classes: Equities and Debt. While they may start their investment journey with equities, they tend to diversify into debt to earn regular income in the form of interest.

NCDs are unsecured debt securities. Investment in them could offer good diversification to those who also invest in equities. NCDs of investment grade issuers are also a secure form of investment.

Experienced investors allocate their capital to equities as they are volatile and can offer better returns but keep aside a portion to invest in debt instruments.

Though equity and debt securities are issued to raise money, they differ by structure. Unlike equity, debt securities have prespecified principal repayment and coupon payment schedules.

SLBM refers to the Stock Lending and Borrowing mechanism that allows a trader to borrow shares that they do not already own or lend stocks and shares that form a part of their portfolio.

Accretive in bonds or accretion refers to the gradual increase in value of a bond's principal over time due to the passage of time.

A bond is a type of fixed-income investment instrument, that refers to a loan made by an investor to the borrower.

A Callable bond is a type of bond or debt security that allows the issuer of the bond to retain the privilege of redeeming it at some point before the date of maturity.