What is a portable bond?

What is a portable bond?

Puttable bond (put bond, putable or retractable bond) is a bond with an embedded put option. The holder of the puttable bond has the right, but not the obligation, to demand early repayment of the principal. The put option is exercisable on one or more specified dates.

What are embedded bonds?

An embedded option is a provision in a financial security (typically in bonds. The bond issuer borrows capital from the bondholder and makes fixed payments to them at a fixed (or variable) interest rate for a specified period.)

What is callable and putable bond?

In contrast to callable bonds (and not as common), putable bonds provide more control of the outcome for the bondholder. Just like callable bonds, the bond indenture specifically details the circumstances a bondholder can utilize for the early redemption of the bond or put the bonds back to the issuer.

What is secured bond?

A secured bond is a type of investment in debt that is secured by a specific asset owned by the issuer. The asset serves as collateral for the loan. If the issuer defaults on the bond, the title to the asset is transferred to the bondholders.

What is portable debt?

A portable Debt is a Debt for which a change in control at the borrower does not trigger the early repayment of the Debt.

What is debt portability?

Capital structure “portability” provisions, which allow a borrower’s loans to remain outstanding despite a change of control event, may be coming to the middle market in 2021. Typically, in the event a borrower is acquired, it must pay back the debt in full or refinance it under new terms.

What is embedded debt?

actual cost paid by a company on its borrowings. This. is often referred to as the ’embedded debt’ approach; − the allowance can be set according to market rates— ie, the expected cost of debt as evidenced by market yields on bonds issued by other corporations that are similar in terms of their sector or credit rating.

What are the different types of bonds?

There are three primary types of bonding: ionic, covalent, and metallic. Definition: An ionic bond is formed when valence electrons are transferred from one atom to the other to complete the outer electron shell.

What is callable and noncallable?

A non-callable bond is a bond that is only paid out at maturity. The issuer of a non-callable bond can’t call the bond prior to its date of maturity. The callable bond is a bond with an embedded call option.

What is a commodity bond?

A commodity bond is a financial security whose return is linked to the price of its underlying commodity. Unlike a conventional bond that pays a stated nominal interest rate and a stated nominal amount upon maturity, the commodity bond’s payoff is a stated quantity of a particular commodity.

Do you get secured bond money back?

Different Ways to Secure Bail If it is cash bail and you pay the full bail amount, the money will be returned to you if the defendant shows up on all the hearing dates. If he won’t, you will never get your money again. Bond can only be discharged if: A defendant found not guilty on the charge.

How much do you pay on a secured bond?

However, if you don’t have the money for bail, then you’ll need to secure a bail bond. That means contacting a bondsman and paying a fee of roughly 10 percent of the cost of bail in order to be released, and you’ll need to pay that fee upfront. This fee is known as a premium.

What is bond put option?

A put option on a bond is a provision that allows the holder of the bond the right to force the issuer to pay back the principal on the bond. A put option gives the bond holder the ability to receive the principal of the bond whenever they want before maturity for whatever reason.

What is option free bond?

An option free bond is a plain vanilla bond with no option embedded.With option embedded means that there is call feature that is the issuer can call back the bond later before maturity when callable bond price exceeds a predetermined price while in the put option bond the investor can sell before maturity of the bond at a predetermined price.With

What is a bond put date?

Bond Mandatory Put Date means the earlier of (i) May 21, 2022 and (ii) the date on which the Administrative Agent, by notice to the Borrower Representative, takes any of the remedy actions set forth in Section 10.1 or all the amounts under this Agreement have automatically become due and payable (whether by acceleration or otherwise).