I have always wanted to write a book that would be different from every
other book on the market. There are no basic money management books
that provide the tools and resources to determine and quantify answers to
personal financial situations and most people’s pressing financial problems.
There are countless personal finance books on the market, but many
do not address how to quantify the specifics of each situation to make the
decisions that will help you achieve your financial objectives and attain financial
Balanced fund An investment company that invests in stocks and bonds. The same as a balanced mutual fund.
Balanced mutual fund This is a fund that buys common stock, preferred stock and bonds. The same as a balanced fund.
Balloon maturity Any large principal payment due at maturity for a bond or loan with or without a a sinking fund requirement. BAN (Bank anticipation notes) Notes issued by states and municipalities to obtain interim financing for projects that will eventually be funded long term through the sale of a bond issue.
Bane In the words of Warren Buffet, Bill Bane Sr., is,...
In the mid-1990’s catastrophe bonds (CAT bonds), also named as Act of God or
Insurance-linked bond, were developed to ease the transfer of catastrophe based
insurance risk from insurers, reinsurers and corporations (sponsors) to capital
market investors. CAT bonds are bonds whose coupons and principal payments
depend on the performance of a pool or index of natural catastrophe risks, or
on the presence of speciﬁed trigger conditions.
In order to monitor the performance of defaulted debt securities, a measure called the
Altman-NYU Salomon Center Index of Defaulted Debt Securities (A-NYU Index) was
The Index is comprised of the publicly traded bonds of companies which have
defaulted on their interest and/or principal payments.
Investment-grade bonds are issued by well-regarded companies
and rated as desirable investments.To be considered investment-
grade, a bond must be rated BBB or better by Standard & Poor’s,
or Baa or better by Moody’s. Corporate bonds with a lower rating
or no rating are sometimes called high-yield bonds because of the
higher interest rates they must pay to attract investors.They are
also sometimes referred to as “junk bonds” because the issuers are
believed more likely to default—that is, to fail to make full interest
and principal payments as scheduled....
Under this approach, euro-area government financing would be fully covered by the
issuance of Stability Bonds with national issuance discontinued. While Member States
could issue Stability Bonds on a decentralised basis via a coordinated procedure, a more
efficient arrangement would imply the creation of a single euro-area debt agency16
centralised agency would issue Stability Bonds in the market and distribute the proceeds to
Member States based on their respective financing needs.
CHAPTER 7 Bonds and Their Valuation
Key features of bonds Bond valuation Measuring yield Assessing risk
What is a bond?
A long-term debt instrument in which a borrower agrees to make payments of principal and interest, on specific dates, to the holders of the bond.
CHAPTER 11 Corporate Bonds
A corporation issues bonds intending to meet all required payments of interest and repayment of principal. Investors buy bonds believing that the corporation intends to fulfill its debt obligation in a timely manner. Although defaults can and do occur
Chapter 7 TREASURY INFLATION-INDEXED SECURITIES. Abstract In January 1997, the U.S. Treasury began to issue inflation-indexed securities (TIIS). The new Treasury security protects investors from inflation by linking the principal and coupon payments to the Consumer Price Index (CPI).
Premium bond A bond that is selling for more than its par value.
Prepackaged bankruptcy A bankruptcy in which a debtor and its creditors pre-negotiate a plan or reorganization and then file it along with the bankruptcy petition. Prepayment speed Also called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities.
Prepayments Payments made in excess of scheduled mortgage principal repayments.
Liquidity Monitoring Ratios
a) The Debt Service Ratio is the proportion of exports of goods and non
factor services that is absorbed for debt service payments, i.e., interest,
principal and other payments. The basic ratio refers only to long and
medium-term debt which covers all loans with an original maturity of
one year and above.
b) The Interest Service Ratio is the ratio of interest payments to exports
of goods and non-factor services.
Like the dollar bills on which its business is based, Wall Street has two
faces. On one side, it is a place – a street in lower Manhattan. On the
other, the term is shorthand for an industry – the US wholesale financial-
services industry. Since Wall Street, the place, is the hub of this
industry, much of the time the two meanings overlap. But lower Manhattan
is by no means the totality of the US wholesale financial-services
industry, and so sometimes the term embraces other locations and institutions....
In addition to substantive reforms of the authorities and practices of regulation and
supervision, the proposals contained in this report entail a significant restructuring of our
regulatory system. We propose the creation of a Financial Services Oversight Council,
chaired by Treasury and including the heads of the principal federal financial regulators
as members. We also propose the creation of two new agencies.
Interest income is recognized on the accrual basis.
Dividend income and distributions from investment
trust units are recognized on the ex-dividend and
ex-distribution date, respectively.
Interest on inflation-indexed bonds will be paid
based on the principal value, which is adjusted for
inflation. The inflation adjustment of the principal
value is recognized as part of interest income in the
Statement of Operations.
One of the key characteristics of
agriculture is the inherent production
risks facing producers from adverse
weather, pests, and diseases. These risks
have been used to justify government
intervention in the form of disaster
assistance payments, emergency loans,
livestock feed assistance programs, crop
insurance, and other subsidized
assistance schemes. Yet, while
government intervention to provide
assistance has been widely supported in
the United States, the form of assistance
has been much debated.
A bond is simply a negotiable IOU, or a loan. Investors who buy
bonds are lending a specific sum of money (the principal) to the
bond issuer—a corporation, a government, or some other borrowing
institution—for a specified period of time (the term).Typically, the
bond issuer promises to make regular payments of interest to the
investor at a rate that is set when the bond is issued.This is why
bonds are often referred to as fixed income investments.
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DEBT SERVICE FUND
The Debt Service Fund is used to account for all expenditures for principal and interest for all long-term debt payments. The other governmental fund types provide the resources to the Debt Service Fund to make the payments through transfers.
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This is trial version www.adultpdf.
An inflation indexed bond protects both investors
and issuers from the uncertainty of inflation over
the life of the bond.1 Like conventional bonds,
indexed bonds pay interest at fixed intervals and
return the principal at maturity. The fundamental
difference is that while conventional bonds make
payments that are fixed in nominal dollars (and thus
are called nominal bonds), indexed bonds make payments
that are fixed in real terms (and thus are called
Bonds are securities that establish a creditor relationship between the purchaser (creditor) and the
issuer (debtor). The issuer receives a certain amount of money in return for the bond, and is
obligated to repay the principal at the end of the lifetime of the bond (maturity). Typically, bonds
also require coupon or interest payments. Since all these payments are determined as part of the
contracts, bonds are also called fixed income securities.
A straight bond is one where the purchaser pays a fixed amount of money to buy the bond.