Debentures are loans, secured by a corporation, municipality or government. Bonds and debentures are instruments that provide for a maturity at which time the principal will be repaid. In addition to the payback of principal, the borrower will pay interest at stated intervals, usually semi-annually.

There are four common types of bonds and debentures:

1. Government bonds and debentures
2. Corporate bonds and debentur (more…)

A bond is a financial asset in the form of a long-term contract under which the firm (borrower) agrees to make payments of interest and principal, on specific dates, to the holders of the bond.  

The value of a bond, as of any financial asset, is the present value of the cash flows that are expected to be generated by the bond. In order to be able to calculate the present value of a bond, we need first to investigate the contractual f (more…)

Financial instruments found in the debt market include:

1. Term Deposits

2. Government bonds

3. Treasury Bills (T-Bills)

4. Money Market Funds

5. Corporate Bonds and Debentures

6. Domestic Bond Funds.

In this article, we will only discuss the term deposits, government bonds, treasury bills and money market fund.

1. Term DepositsTerm Deposits (more…)

The Fed announced today that they were reducing the Discount rate another 50 basis points after having just reduced it 75 basis points last week. So, the Fed has dropped rates 1.25% in ten days. So, how did the market react? All three major Indexes were in tge red at th close. Why? Could it be Alan Greenspan?

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A discount offset mortgage is an offset mortgage with a discount on the standard variable rate (SVR) of interest for a set amount of time.

This article will briefly look at a standard offset mortgage, and then look at the difference a discount offset mortgage makes to the borrower.

An Offset Mortgage

An offset mortgage combines your main current account and/or savings account with your mortga (more…)