Bond Circular

DEFINITION of 'Bond Circular'

A standardized legal document that contains an abbreviated version of the relevant terms from the prospectus of a new bond issue. The bond circular is made available to prospective investors and contains basic information including: issuer, amount of the issue, coupon, use of proceeds and final legal maturity of the bond.

Also known as an "offering circular".

BREAKING DOWN 'Bond Circular'

All securities and mutual funds made available for sale in the U.S. must have an offering circular per the Securities Act of 1933. It is usually delivered electronically along with the prospectus to potential investors. In addition to the basic information described above, the bond circular describes whether debt is senior or subordinated and how the company plans to use the issue proceeds.

RELATED TERMS
  1. Coupon

    The annual interest rate paid on a bond, expressed as a percentage ...
  2. Bond

    A debt investment in which an investor loans money to an entity ...
  3. Senior Debt

    Borrowed money that a company must repay first if it goes out ...
  4. Issuer

    A legal entity that develops, registers and sells securities ...
  5. Offering Circular

    An abbreviated prospectus for a new security listing. Delivered ...
  6. Subordinated Debt

    A loan (or security) that ranks below other loans (or securities) ...
Related Articles
  1. Fundamental Analysis

    Interpreting A Company's IPO Prospectus Report

    Learn to decipher the secret language of the IPO prospectus report - it can tell you a lot about a company's future.
  2. Bonds & Fixed Income

    Basics Of Federal Bond Issues

    Treasuries are considered the safest investments, but they should still be analyzed when issued.
  3. Options & Futures

    Common Bond-Buying Mistakes

    Avoid these errors made daily in bond portfolios everywhere.
  4. Mutual Funds & ETFs

    3 Expensive Mid-Cap Mutual Funds Worth Your While (ETAGX, VMACX)

    Discover three mutual funds with above-average expense ratios and consistent outperformance of the S&P 500 Index and the Russell Mid-Cap Index.
  5. Mutual Funds & ETFs

    JANBX: Overview of Janus Balanced Fund

    Discover a balanced mutual fund with a solid performance history, weathering down markets and routinely outperforming equity indexes in up markets.
  6. Mutual Funds & ETFs

    Trends in Capital Flows: U.S. Equities

    Analyze asset flow data for U.S. equity mutual funds and ETFs from 2014 and 2015 to identify changes in demand, investor sentiment and outlook.
  7. Mutual Funds & ETFs

    Large Cap Mutual Funds: 5 Long-Term Portfolio Managers to Consider (FDGRX, TRBCX)

    Discover five mutual fund managers who have extensive investment experience, managing portfolios that have routinely outperformed their benchmarks.
  8. Mutual Funds & ETFs

    FREEX: A Performance Case Study

    Learn about the Franklin Real Estate Securities Fund, including a historical analysis per quarter of the fund's performance over the past decade.
  9. Mutual Funds & ETFs

    3 Expensive Global Bond Mutual Funds Worth Your While (FTIBX, AIBRX)

    Find out why these three funds with high management expense ratios may still be worth your consideration for global bond funds investing.
  10. Mutual Funds & ETFs

    5 Utilities Mutual Funds to Avoid in 2016 (FLRUX, MMUBX)

    Explore five utilities sector mutual funds that investors should avoid in 2016 due to below-average Sharpe ratios and high expense ratios.
RELATED FAQS
  1. A corporate bond I own has just been called by the issuer. How can a company legally ...

    Bond issues can contain what is referred to as a call provision, which is a right afforded to the issuing company enabling ... Read Answer >>
  2. Is a money market account the same as a money market fund?

    Discover the differences between money market accounts and money market funds, including minimum balance requirements, withdrawal ... Read Answer >>
  3. What typically comprises a money market fund?

    Learn about the basic types of money market funds and discover how they are characterized by the types of investments that ... Read Answer >>
  4. Do financial advisors get paid by mutual funds?

    Learn how mutual funds reimburse financial advisors for recommending that their clients invest in funds and stay invested ... Read Answer >>
  5. Besides a savings account, where is the safest place to keep my money?

    Savings accounts are safe because investors' deposits are guaranteed by the Federal Deposit Insurance Corporation (FDIC) ... Read Answer >>
  6. What advantages do exchange-traded funds have over mutual funds?

    Exchange-Traded Funds (ETFs) are growing ever more popular, as they were created to combine the best characteristics of both ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center