Bonds
What are Bonds? Bonds are fixed-income securities that are issued by corporations and governments to raise capital. 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 an Indenture? An indenture is a binding contract between an...
Celebrity Bond
What is a Celebrity Bond? A celebrity bond is a type of asset-backed security issued by a holder of fame-based intellectual property rights. Issuers of celebrity bonds receive money upfront from investors in exchange for proceeds from future royalties from the works of art, which are covered by intellectual property rights listed in the security. Celebrity...
Momentum Investing
What is Momentum Investing? Momentum investing is an investment strategy aimed at purchasing securities that have been showing an upward price trend or short-selling securities that have been showing a downward trend. The main rationale behind momentum investing is that once a trend is well-established, it likely to continue. There is no consensus among economists...
Coupon Bond
What is a Coupon Bond? A coupon bond is a type of bond that includes attached coupons and pays periodic (typically annual or semi-annual) interest payments during its lifetime and its par value at maturity. These bonds come with a coupon rate, which refers to the bond’s yield at the date of issuance. Bonds that have...
Over-the-Counter (OTC)
What is Over-the-Counter? Over-the-counter (OTC) is the trading of securities between two counterparties executed outside of formal exchanges and without the supervision of an exchange regulator. OTC trading is done in over-the-counter markets (a decentralized place with no physical location), through dealer networks. Contrary to trading on formal exchanges, over-the-counter trading does not require the...
