Since opposite charges attract via a simple electromagnetic force, the negatively charged electrons that are orbiting the nucleus and the positively charged protons in the nucleus attract each other. An electron positioned between two nuclei will be attracted to both of them, and the nuclei will be attracted toward electrons in this position. This attraction constitutes the chemical bond. Due to the matter wave nature of electrons and their smaller mass, they must occupy a much larger amount of volume compared with the nuclei, and this volume occupied by the electrons keeps the atomic nuclei relatively far apart, as compared with the size of the nuclei themselves. This phenomenon limits the distance between nuclei and atoms in a bond.
In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. It is a debt security, under which the issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay them interest (the coupon) and/or to repay the principal at a later date, termed the maturity date. Interest is usually payable at fixed intervals (semiannual, annual, sometimes monthly). Very often the bond is negotiable, i.e. the ownership of the instrument can be transferred in the secondary market. This means that once the transfer agents at the bank medallion stamp the bond, it is highly liquid on the second market.
Thus a bond is a form of loan or IOU: the holder of the bond is the lender (creditor), the issuer of the bond is the borrower (debtor), and the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure. Certificates of deposit (CDs) or short term commercial paper are considered to be money market instruments and not bonds: the main difference is in the length of the term of the instrument.
Dynamic bond funds are ideal for investors who may find it difficult to judge the interest rate movement. These bond funds help investors minimize interest rate risk as they offer flexibility to alter the portfolio maturity according to the interest rate scenario ... Investors should ...
Risk aversion due to Covid driving issues; investors protected ... Investors in covered bonds have the right over a pool of assets held by the issuers, primarily non-bank lenders, in case of a default.
The issue, which has been oversubscribed due to buoyed interest of investors, is part of the P15 billion ASEAN green bonds shelf registration of the energy firm. “Due to the strong demand from investors for the first tranche bonds, the issuance was more than 10x oversubscribed, ...
The latest AsiaBondMonitor said bond yields in emerging East Asia diverged due to market-specific factors, while uncertainty about the COVID-19 pandemic and concerns over inflationary pressure led to subdued investor sentiment, said the report. The report said yields on short-term (two-year) government bonds from Feb.
The main reason behind this is the increasing bond yields that are fuelling higher inflationary expectations. If investors are expecting inflation, they sell bonds, which reduces their price but increases their yield. Higher bond yields, therefore, signify higher expected inflation.
Approaching mid-year in 2021, investors are still not convinced how the game will end up ... The consequences of this new world splits economists and investors – but could define the era and have huge political implications ... Investors may have to pick a side ... stocks and corporate bonds rising over the past week, according to JPMorgan.
The pool has been growing as surging demand for Chinese goods during the pandemic has beefed up foreign earnings of exporters, while the resilient economy and strengthening currency have lured overseas investors to sell dollars for yuan to buy Chinese stocks and bonds.
This capital can come from service providers themselves, or from an ImpactBond, which sources external risk capital from Development Finance Institutions (DFIs) and social investors ... involvement of the private sector, either as investors in an Impact Bond or as partners in a PPP.
China’s resilient economy and strengthening currency have attracted record foreign purchases of bonds and stocks over ... Overseas investors snapped up 1 trillion yuan ($154 billion) of onshore bonds over the past year, attracted by the relatively high yields on yuan-denominated debt.
Yet investors will be watching the core PCE inflation reading closely for signs of strong price rises ...Richard Hunter, head of markets at Interactive Investor, said ... Elsewhere, falling bond yields suggested investors are becoming comfortable with the central bank's management of the economy and markets.
... skirted a potential bond default ... While AIFs should be allowed to purchase bad loans directly from banks and enjoy enforcement rights under the SARFAESI Act, ARCs should be allowed to purchase stressed assets from mutual funds, insurance companies, bond investors and ECB lenders.
Because each bond issuer disclosed their information separately, it has been difficult for investors to gather all needed information. The KRX said it decided to open a public information portal regarding SRI bonds in order to provide transparent information on the bonds and to help investors save time and money.
Starting today, BarnBridge (BOND) and Livepeer (LPT) are available on Coinbase.com and in the Coinbase Android and iOS apps ... BarnBridge (BOND) ... By using SMARTYield, senior bond investors can receive fixed rates at potentially lower risk while junior bond investors can receive higher rates at higher risk.