Finance

Counterparty risk is twofold: the risk of tainted scrip entering the market, and settlement risk. The former involves the sale of tainted (fraudulent) certificates by…

Government Debt: As the largest issuer of bonds (in most countries) the central government deserves special mention. Because the central government is the largest issuer…

Special purpose vehicles (SPVs) are also large issuers of bonds in many countries. Generally, the banks create or encourage the creation of SPVs. These vehicles…

There are many reasons for borrowing in the bond market, but the fundamental reason is to acquire long term finance or funds, usually for long-term…

The long term undertakings of a fixed capital nature of issuers are what give rise to the issue of bonds. Many companies and governments and…

Trading in bonds (secondary market broking and dealing) is a size able business in most financial markets. As noted earlier the secondary market is either…

The bond market is a part of the long-term debt market: it is the market for marketable long-term debt; i.e. debt that is issued in…

Bonds may be defined as marketable long-term debt obligations of the issuers. Each issuer undertakes to repay the face value at the end of the…

The money market is usually defined as the market for marketable short-term debt instruments and the bond market as the market for marketable long-term debt…

A static budget is fixed for the entire period covered by the budget, with no changes based on actual activity. Thus, even if actual sales…