Bonds meaning the basic nature of the face elements characteristics and classification Money Tips

Category: Money tips Release Date: 2006-02-21

Bonds, meaning:
Bonds has four aspects: First, the issuer is borrowing economic entities; Second, investors are lending money for economic agents; the three, the issuer requires a certain period of debt service; the four, reflecting the issuers and investors, the relationship between the claims and liabilities, but also the relationship of legal documents.

The basic nature of the bond:
1, bonds are securities.
2, the bond is a kind of virtual capital. Because the bond is the essence of a certificate to prove claims and liabilities in the claims and liabilities to establish when the funds have been invested in the debtor's occupation, therefore, the bond is the actual use of the real capital of the certificate.
3, bonds are debt performance. This right is not directly dispose of property, not ownership of that asset, but a claim.

Coupon bond elements:
1, par 2, repayment period of three, interest rate 4, the bond issuer name of the

Bond characteristics:
1, repayable. Refers to the bonds, there is a specific repayment period, the debtor must pay interest to creditors on time and repay principal.
2, mobility. Refers to the bondholders according to their needs and the actual market situation, out of the bond to recover principal and interest of flexibility, which is mainly determined by the market provided by the ease of transfer.
3, security. Refers to the proceeds of the bondholders is relatively fixed, not with the issuer to changes in operating income, and can recover the principal on schedule.
4, profitability. Refers to the bonds for investors with a certain income.

Bond Category:
1, according to distribution of the main categories:
1, 2 government bonds, financial bonds, three, two corporate bonds, according to interest-bearing mode classification
1, 2 simple interest bonds, compound interest bonds, three, four discount bonds, a progressive three-rate bonds, according to the interest rate is fixed category
1, 2 fixed-rate bonds, floating rate bonds 4, according to morphological classification of bonds
1, in-kind bonds. Is a kind of standard format the physical side of the bond coupons. In the present stage of our national debt categories, bearer bonds are such a kind, bonds, and it kind of claims vouchers in the form of records, face value and so on, anonymous and do not report the loss can be traded.
2, certificated securities. Is a collection of creditors for the Notes certificate, rather than issuers of bonds to develop a standard format. In recent years, through the banking system in China issued bearer bonds, coupons are not printed surface face amount (but according to the subscription amount to subscribe for those who fill in the actual payment amount), is a national savings, fasting, and can be anonymous and report the loss to "certificate collection voucher-type government bonds "record claims can not be traded, from the date of purchase interest.
3, accounting-type bonds. There is no physical form of vouchers, but the computer account for the record. China recently adopted by the Shanghai and Shenzhen Stock Exchange's trading system, distribution and trading of book-entry treasury bonds examples in this respect.