Bond credit ratingIn investment, the bond credit rating represents the of corporate or government bonds. The ratings are published by and used by investment professionals to assess the likelihood the debt will be repaid. Credit rating agenciesCredit rating is a highly concentrated industry with the – Fitch Ratings, Moody's and Standard & Poor's (S&P) – controlling approximately 95% of the ratings business.
Security (finance)A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any form of financial instrument, even though the underlying legal and regulatory regime may not have such a broad definition.
Seniority (financial)In finance, seniority refers to the order of repayment in the event of a sale or bankruptcy of the issuer. Seniority can refer to either debt or preferred stock. Senior debt must be repaid before subordinated (or junior) debt is repaid. Each security, either debt or equity, that a company issues has a specific seniority or ranking. Bonds that have the same seniority in a company's capital structure are described as being pari passu.
Capital structureMix of funds used to start and sustain a business In corporate finance, capital structure refers to the mix of various forms of external funds, known as capital, used to finance a business. It consists of shareholders' equity, debt (borrowed funds), and preferred stock, and is detailed in the company's balance sheet.
Structured financeStructured finance is a sector of finance and financial law concerned with managing leverage and risk. Strategies may involve off-balance-sheet accounting or the use of financial instruments to manage credit risk and facilitate capital flows. Securitization provides $15.6 trillion in financing and funded more than 50% of U.S. household debt in 2021.
Pari passuPari passu is a Latin phrase that literally means "with an equal step" or "on equal footing". It is sometimes translated as "ranking equally", "hand-in-hand", "with equal force", or "moving together", and by extension, "fairly", "without partiality". Etymology is the ablativesingularmasculine (since it must grammatically agree with passu) of the adjectivepar, "equal". If it were nominative, "an equal step", it would be par passus.
Bond (finance)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 provide cash flow to the creditor; which usually consists of repaying the principal (the amount borrowed) of the bond at the maturity date, as well as interest (called the coupon) over a specified amount of time.
French languageFrench (français or langue française) is a Romance language of the Indo-European family. Like all other Romance languages, French and its closest relatives—the langues d'oïl, historically spoken in northern France and southern Belgium—descended from the Vulgar Latin of the Roman Empire. It was influenced by native Celtic languages of Northern Roman Gaul and by the GermanicFrankish language of the post-Roman Frankish invaders.
TrenchA trench is a type of excavation or depression in the ground that is generally deeper than it is wide (as opposed to a swale or a bar ditch), and narrow compared with its length (as opposed to a simple hole or pit). In geology, trenches result from erosion by rivers or by geological movement of tectonic plates. In civil engineering, trenches are often created to install underground utilities such as gas, water, power and communication lines.
RiskPossibility of something bad happeningFirefighters are exposed to risks of fire and building collapse during their work.Risk is the possibility of something bad happening, comprising a level of uncertainty about the effects and implications of an activity, particularly negative and undesirable consequences.Harbor sign warning visitors that use of the walkway is "at your own risk"Risk theory, assessment, and management are applied but substantially differ in different practice areas, such as business, economics, environment, finance, information technology, health, insurance, safety, security, and privacy.
IndentureAn indenture is a legal contract that reflects an agreement between two parties. Although the term is most familiarly used to refer to a labor contract between an employer and a laborer with an indentured servant status, historically indentures were used for a variety of contracts, including transfers and rents of land and even peace agreements between rulers.SecuritizationSecuritization is the financial practice of pooling contractual debt obligations (such as residential mortgages, commercial mortgages, auto loans, or credit card debt) and selling their associated cash flows to investors. The financial instruments sold in such transactions are known as securities, types of which include bonds, pass-through securities, and collateralized debt obligations (CDOs).
trancheRelated word or term.
Security (finance)A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any form of financial instrument, even though the underlying legal and regulatory regime may not have such a broad definition.Seniority (financial)In finance, seniority refers to the order of repayment in the event of a sale or bankruptcy of the issuer. Seniority can refer to either debt or preferred stock. Senior debt must be repaid before subordinated (or junior) debt is repaid. Each security, either debt or equity, that a company issues has a specific seniority or ranking. Bonds that have the same seniority in a company's capital structure are described as being pari passu.Capital structureMix of funds used to start and sustain a business In corporate finance, capital structure refers to the mix of various forms of external funds, known as capital, used to finance a business. It consists of shareholders' equity, debt (borrowed funds), and preferred stock, and is detailed in the company's balance sheet.Structured financeStructured finance is a sector of finance and financial law concerned with managing leverage and risk. Strategies may involve off-balance-sheet accounting or the use of financial instruments to manage credit risk and facilitate capital flows. Securitization provides $15.6 trillion in financing and funded more than 50% of U.S. household debt in 2021.Pari passuPari passu is a Latin phrase that literally means "with an equal step" or "on equal footing". It is sometimes translated as "ranking equally", "hand-in-hand", "with equal force", or "moving together", and by extension, "fairly", "without partiality". Etymology is the ablativesingularmasculine (since it must grammatically agree with passu) of the adjectivepar, "equal". If it were nominative, "an equal step", it would be par passus.Bond (finance)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 provide cash flow to the creditor; which usually consists of repaying the principal (the amount borrowed) of the bond at the maturity date, as well as interest (called the coupon) over a specified amount of time.French languageFrench (français or langue française) is a Romance language of the Indo-European family. Like all other Romance languages, French and its closest relatives—the langues d'oïl, historically spoken in northern France and southern Belgium—descended from the Vulgar Latin of the Roman Empire. It was influenced by native Celtic languages of Northern Roman Gaul and by the GermanicFrankish language of the post-Roman Frankish invaders.TrenchA trench is a type of excavation or depression in the ground that is generally deeper than it is wide (as opposed to a swale or a bar ditch), and narrow compared with its length (as opposed to a simple hole or pit). In geology, trenches result from erosion by rivers or by geological movement of tectonic plates. In civil engineering, trenches are often created to install underground utilities such as gas, water, power and communication lines.RiskPossibility of something bad happeningFirefighters are exposed to risks of fire and building collapse during their work.Risk is the possibility of something bad happening, comprising a level of uncertainty about the effects and implications of an activity, particularly negative and undesirable consequences.Harbor sign warning visitors that use of the walkway is "at your own risk"Risk theory, assessment, and management are applied but substantially differ in different practice areas, such as business, economics, environment, finance, information technology, health, insurance, safety, security, and privacy.IndentureAn indenture is a legal contract that reflects an agreement between two parties. Although the term is most familiarly used to refer to a labor contract between an employer and a laborer with an indentured servant status, historically indentures were used for a variety of contracts, including transfers and rents of land and even peace agreements between rulers.SecuritizationSecuritization is the financial practice of pooling contractual debt obligations (such as residential mortgages, commercial mortgages, auto loans, or credit card debt) and selling their associated cash flows to investors. The financial instruments sold in such transactions are known as securities, types of which include bonds, pass-through securities, and collateralized debt obligations (CDOs).trancheRelated word or term.*As an Amazon Associate I earn from qualifying purchases.