A “dim sum bond” is a slang name for bonds issued in Hong Kong and denominated in Chinese yuan. Dim sum bonds appeal to overseas investors who want exposure to renminbi-denominated assets but are unable to participate in domestic Chinese debt due to China’s capital controls. What exactly is a Dim Sum Bond? What Is […]

A Customs bond is a legal agreement between a principal (importer or shipper), a Surety business, and CBP that ensures the importer follows Customs regulations and pays CBP for applicable import duties, taxes, fines, and penalties. What exactly is a customs bond and how does it function? A Customs bond is a legal agreement between

A judicial bond is a sort of court bond that is often necessary to limit the amount of money that could be lost as a result of a decision. Because surety underwriters cannot foresee the outcome of court judgements, judicial bonds are more risk adverse than other types of surety bonds, making them more difficult

A government bond, sometimes known as a sovereign bond, is a debt obligation issued by the government of a country to fund government spending. It usually entails a promise to pay periodic interest, known as coupon payments, as well as a promise to refund the face value on the maturity date. For example, if a

Bonds issued by corporations are a type of debt financing. Along with equity, bank loans, and lines of credit, they constitute an important source of finance for many businesses. They are frequently provided to give immediate funding for a specific project that a firm wishes to undertake. Debt financing is sometimes preferable to issuing stock

Companies issue corporate bonds because they have a lot of leeway in terms of how much debt they may issue. Corporate bonds have terms ranging from less than five years to more than ten years. Because they carry the most risk, corporate bonds pay the highest yields. What are the benefits of corporate bonds? Bond

Bond A will pay $20 every six months because most bonds are paid semi-annually. In addition, at the end of the ten years, the bond will make a $1,000 principal payment. Because it is not trading at a premium or a discount, the bond pays a 4.00 percent yield to maturity. What is the yield

Companies issue corporate bonds to raise funds for a variety of reasons, including the construction of a new factory, the purchase of equipment, or the expansion of their firm. Corporate bonds are debt instruments with a maturity of more than one year that are typically medium to long term. Commercial paper refers to debt instruments

A corporate bond is a loan given to a firm for a specific length of time. In exchange, the corporation promises to pay interest (usually twice a year) and subsequently refund the bond’s face value when it matures. As an example, consider a conventional fixed-rate bond. If you put $1,000 into a 10-year bond with

The term “core bond fund” refers to bond funds that serve as the foundation of your bond fund portfolio. They are well-diversified across the US investment grade bond market, which includes US government, corporate, agency, and mortgage-backed bonds (tax free municipal bond funds are not normally included). What exactly is a core bond fund? Core