Series 7
Debt Securities - Introduction
Introduction
Bonds are loans that are, for the most part, traded. The exception would be a private placement bond issue where the debtor institution borrows directly from the investor, bypassing the public markets. Their primary use is to provide income to the holder (investor, creditor), but also figure in the asset allocation process and may be bought and sold for capital gains.
There are three different types of issuers of bonds, or debt instruments, in the United States:
If you need a quick primer on bonds, refer to our Bond Basics Tutorial.
Bonds are loans that are, for the most part, traded. The exception would be a private placement bond issue where the debtor institution borrows directly from the investor, bypassing the public markets. Their primary use is to provide income to the holder (investor, creditor), but also figure in the asset allocation process and may be bought and sold for capital gains.
There are three different types of issuers of bonds, or debt instruments, in the United States:
- Corporations
- The federal government and its agencies
- State and municipal governments
If you need a quick primer on bonds, refer to our Bond Basics Tutorial.
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