Promissory Notes

Promissory note is a note containing a promise to pay a certain amount to the person who should receive the money.

Subordinated Debt

Subordinated debt is an interesting concept in the case of business. As the name suggests, the debt which is subject to subordination when the creditors default is called subordinated debt.

Subordination Debt | Meaning | Example | Types | Risks

In this article we will look at subordination debt, its types such as collateral, structural, contractual & understand risk, working with the help of examples.

Payment in Kind Bond

PIK bond is the one on which the borrowing company pays no cash interest until the total principal is repaid or redeemed.

Fallen Angel

Fallen Angels refer to a bond which was once attached with a High/Stable rating but due to some unfavorable circumstances, has experienced a serious and sustained decline in the ratings and market demand.

Hypothecation

Hypothecation is a term used wherein the borrower can pledge his movable assets as a loan while retaining the interest and the ownership of the assets.

Junior Tranche

Guide to Junior Tranches, important features of Junior Tranches, how it is recorded in the balance sheet and why are Junior Tranches used?

Bills of Exchange | Meaning | Examples | Top Features

Bills of exchange are negotiable instruments which contain an order to pay a certain amount to a particular person within a stipulated period of time.

Bills of Exchange vs Promissory Note

Bill of exchange is an instrument ordering the debtor to pay a certain amount within a stipulated period of time. Whereas promissory note is a promise to pay a certain amount of money within a stipulated period of time. And the promissory note is issued by the debtor.

ABS and MBS Index

In this article, learn what are ABS and MBS Indices, what do they signify, types of ABS/MBS Indices, examples and its relationship with an economic crisis.

Asset Backed Securities (RMBS, CMBS, CDOs)

ABS provides an opportunity to large institutional investors to invest in higher yielding asset classes without taking much additional risk, and at the same time helps lenders in raising capital without accessing primary markets.

Difference Between Bonds and Debentures

Bond is a financial instrument which is issued for raising an additional amount of capital. Whereas debenture is a debt security which is issued by Corporation not secured by assets but by the Credit rating of the organization.