Bonds

Agency Bond

A debt security issued by a government-sponsored enterprise such as Fannie Mae or Freddie Mac, designed to resemble a US Treasury bond.

Samurai Bond

A Yen denominated bond issued in Japan by a non-Japanese borrower. Samurai bonds can be used by non-Japanese companies to gain access to the Japanese market. See also: Euroyen

Additional bonds test

A test to ensure that bond issuers are able to meet the debt service requirements of issuing any new additional bonds.

Active bond crowd

Refers to the most active members the bond department of the NYSE. Opposite of the cabinet crowd.

Above par

Describes a bond with a current price above face value.

Debt Security

A debt security is a security that represents a loan made by an investor to an issuer. The issuer agrees to pay interest and to repay the debt on a specified date in exchange for being granted the loan.

AAA

A rating given on bonds by bond rating agencies. AAA is the highest rating given and such bonds are thought to have almost no risk of default.