Thursday, November 13, 2014

Coupons for your bonds


  • The "coupon" payment received by a bondholder from the bond issuer comes from the day when little slips of paper--coupons--we attached to paper bonds and had to be physically redeemed to redeem interest payments.
  • Bonds sold in the US by non-US issuer but denominated in dollars are called Yankee bonds; bonds sold in Japan by a non-Japanese issuer but denominated in yen are called Samurai bonds
  • Debt securities are being formed by everything, including student loans, credit card loans, home equity loans, and car loans.

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