The Money Farm Team

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 dollar bond is a bond issued by a foreign firm or government outside of the United States that is denominated in US dollars rather than the local currency. Dollar bonds are utilized to appeal to a wider range of investors because U.S.-based creditors will face less currency risk. For international issuers, however, dollar bonds

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

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 municipal bond issued by cities, local governments, or their agencies in California is known as a California municipal bond. Roads, schools, parks, public utilities, housing, publicly owned airports and seaports, levees, public facilities, and other critical building and infrastructure projects in California are funded by municipal bonds. California municipal bonds can be general obligations

Bonds are one way for businesses to raise funds. A bond is a type of debt between an investor and a company. The investor agrees to contribute the firm a specified amount of money for a specific period of time in exchange for a given amount of money. In exchange, the investor receives interest payments

Banks use CoCo bonds to withstand financial losses. Investors in CoCos agree to take equity in exchange for the regular income from the debt when the bank’s capital ratio falls below regulatory standards, rather than converting bonds to ordinary shares merely on the basis of stock price increase. The stock price, on the other hand,

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

A catastrophe bond (CAT) is a high-yield financing instrument designed to help insurance companies raise money in the case of a natural disaster. A CAT bond allows the issuer to obtain funds only if certain events, such as an earthquake or tornado, occur. The need to pay interest and refund the principal is either suspended

The prolonged use of capital controls is incompatible with the goal of achieving reserve currency status in the long run, but we do not see a shift away from a controlled exchange rate in the near future. Relative Value Chinese bonds may have a greater yield than equivalent bonds issued in industrialized bond markets, but