An agency bond is a type of security that is issued by an authorized and recognized financial entity by the government, with the...
As a part of SIFMA, former bond market association members in the U. S. have developed policies and practices that further the interests of hundreds of banks and private firms. Whereas BMA was an international organization, SIFMA is the U.S. chapter of the Global Financial Markets Association...
Another type of bond issued by government agencies is thegovernment-sponsored enterprise(GSE) bond. These bonds are issued by corporations that are not quite part of the government but are set up by Congress to work for the common good of the country. These enterprises mostly operate on their ...
Maturity is the date when the principal or par amount of the bond is paid to investors, and the company’s bond obligation comes to an end. Hence, it defines the lifetime of the bond. A bond’s maturity is a crucial consideration an investor looks into based on the investment goals. T...
An agency bond is a debt security issued by a federal government department or by a government-sponsored enterprise such as Freddie Mac or Fannie Mae. more Yield Equivalence Yield equivalence is the interest rate on a taxable security that would produce a return equal to that of a tax-exempt...
How Does a Bid Bond Work? Bid bonds are a type of three-party financial arrangement whereby an obligee (typically the developer or government agency doing the project) requires a principal (the contractor) to obtain a bond, usually from a surety which in practice is often an insurance compan...
What is a bond? In simple terms, bonds are a form of debt. Just as you might take out a loan to buy a car or a house, bonds are a way for governments to borrow money to pay for infrastructure projects, the military and other services, or for corporations to fund their operations,...
A bond is a loan to a government, agency, or company that is repaid with interest. Bonds can complement stocks and other more aggressive investments in a portfolio. The IOUs of the financial world, bonds represent a government's, agency's, or company's promise to repay what it borrows—...
Most often, it's done by requiring the one hired to obtain a performance bond. For anyone seeking work in the construction industry, it's crucial to understand how this common type of surety bond works and why it is critical to your business. Viking Bond Service is here to break it ...
A surety bond (pronounced “shoo-ruh-tee”) is a legally binding agreement involving three parties—the Principal, the Obligee, and the Surety. In this agreement, the Surety provides a financial guarantee to the Obligee if the Principal defaults on their obligations, such as not being able ...