Accrued interest refers to the interest that has been earned but not yet paid or received. It is often reported during interim periods between scheduled interest payments, and it accumulates from the date of issuance or the time of last interest payment.
The capital market is a venue where various long-term securities such as equities, mortgages, and bonds are traded. It contrasts with the money market, which deals with short-term securities.
Collateralized Debt Obligation (CDO) is a complex financial product that is structured and sold to investors, leveraging various types of debt instruments like bonds, mortgages, and loans as collateral.
Face amount refers to the nominal value or dollar value of a security stated by the issuer. For bonds, it is the principal amount paid back to the bondholder at maturity. For insurance policies, it represents the amount payable to the beneficiary upon the death of the insured.
Face value refers to the nominal or dollar value stated on financial instruments, such as bonds, stocks, or mortgages. It is a fixed amount, unaffected by fluctuating market prices.
A floating rate is an interest rate on a loan, bond, or other fixed-income security that fluctuates over time according to a specific benchmark or index. This rate is not fixed and can change throughout the term of the financial instrument.
An indenture is a formal legal agreement made between two or more parties, especially regarding obligations in the world of real estate, finance, and bond issuance.
Mortgage-Backed Bonds (MBBs) are a type of bond that is secured by a pool of mortgage loans, providing investors with regular interest payments derived from the underlying mortgage payments.
A mortgage-backed security (MBS) is a type of financial instrument that is secured by a pool of mortgage loans, offering investors income streams derived from these mortgages.
Security in real estate is an important concept that can refer to collateral for a debt or a financial instrument that represents ownership rights. Proper understanding of security mechanisms protects investments and aids in ensuring lawful exchanges.
