Foreign Debt
What is Foreign Debt? Foreign debt refers to the money that a government, an organization, or a household borrows from the government or private lenders of another country. The obligations to organizations such as the World Bank and the Asian Development Bank (ADB) are also categorized as foreign debt. The short-term debt can be used...
Sovereign Debt
What is Sovereign Debt? Sovereign debt is the government debt of a country, a sovereign nation. It is also referred to as government debt, national debt, public debt, or country debt. The sovereign debt of a country consists of all its debt liabilities to both domestic and foreign creditors. Technically, the sovereign debt of a...
Securities Lending
What is Securities Lending? Securities lending is the act of lending or loaning a financial security, a stock, bond, or derivative, to a firm or an investor. It involves the borrower to provide collateral for the security that they are borrowing. The collateral can be in the form of either cash, bonds, shares or letter...
High-Yield Bond
What is a High-Yield Bond? A high-yield bond is a bond that carries a relatively higher interest rate as a result of its lower credit rating, compared to investment-grade bonds. It is a corporate bond with a credit rating below Baa3 from Moody’s or BBB- from Standard and Poor’s (S&P) and Fitch. High-Yield Bonds and...
Harvest Strategy
What is a Harvest Strategy? A harvest strategy is a calculated decision to minimize all types of spending on a specific product to maximize profitability, despite a potential decline in market share. A harvesting strategy can be developed for product or business lines and serves as an “exit” plan should a product become outdated. Harvesting...
