Bond

Extendable bonds are bonds where the issuer has the option to extend the term of the bond beyond the (initial) maturity date for another fixed…

Split coupon bonds are similar to Pay-in-kind or PIK bonds in that no interest is paid in the first few years (except that here the…

Pay-in-kind (PIK) bonds are bonds where the issuer has the option to pay the interest in the form of additional bonds. In some cases the…

A guaranteed bond is a bond that is guaranteed by a party other than the issuer. One has to differentiate here between company bonds and…

Junk bond is the term for bonds of companies that are not rated (because they cannot get a decent rating) or for bonds that are…

In secularization, certain assets that have a cash flow are pooled and bonds (or short-term commercial paper) are issued to fund these assets. Highly rated…

Asset-backed bonds are not a bond variety but are included here for the sake of comprehensiveness. Any of the bonds already mentioned or to be…

Catastrophe bonds are bond issues by risk takers such as insurance companies to offset some of their risk. For example, in 1997 Tokyo Marine &…

A serial bond is a US municipal debt instrument. It is a series of bonds that are issued together, each with a different maturity. An…

A revenue bond is a US municipal bond that is issued to finance a specific project that is revenue generating, for example, a sewerage plant,…