Internote

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DEFINITION of 'Internote'

Corporate debt securities that are designed to allow ease of purchase by individual investors. Internotes reflect the issued debt of the underlying entity which allows retail investors to gain access to bank, corporate or government bonds. Internotes are usually unsecured and have a minimum investment of $1000.

BREAKING DOWN 'Internote'

Internotes carry credit and secondary market risk. They have a starting price, known as par. If $1000 worth of bonds are purchased, at maturity the initial amount is returned with accumulated interest. They are offered for one week starting on Monday and have separate CUSIP numbers based on the specific terms. These terms could include the maturity, call provisions or coupons.

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RELATED FAQS
  1. What is the relationship between the current yield and risk?

    The general relationship between current yield and risk is that they increase in correlation to one another. A higher current ... Read Full Answer >>
  2. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  3. What does it signify if the term structure of an interest rate's curve is positive?

    When the term structure of interest rates is positive, it is a signal to economists the short-term yields on similar bonds ... Read Full Answer >>
  4. Where can I find information about corporate bond issues?

    Information about new and existing corporate bond issues is published regularly in financial newspapers, such as The Wall ... Read Full Answer >>
  5. What are some examples of high yield bonds?

    Issuers of high-yield bonds can be firms from virtually any market sector. The noninvestment grade rating of their bond issues ... Read Full Answer >>
  6. How safe are high yield bonds?

    High-yield bonds, also commonly known as junk bonds, have lower credit ratings than investment grade corporate bonds as well ... Read Full Answer >>

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