Term Bond

Term Bond

An issue of bonds that mature at the same time. Corporate bonds are sometimes term bonds. In these situations, a corporation issues bonds and sells them to whatever person or institution will buy them; all the bonds mature at the same time. Both municipal bonds and corporate bonds combine aspects of both term and serial issuances in which some parts of the issue mature at various times, but in which the bulk matures all at once. See also: Serial bonds.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Third, investors appear to be demanding a higher term premium in the face of rising inflation expectations - the term premium is the additional compensation demanded by investors for holding a long term bond over a short term bond.
The liability increased at the end of 2003 even with the 9.7 per cent return because the actuarial valuation had to assume that the assets will only earn 5.75 per cent in the future (based on long term bond rates) even though the liabilities (annuities) require a 7 per cent return.
Additionally, he is a co-manager on Nuveen Asset Management's Short Term Bond product and is also a member of the Securitized Debt Sector Team.
The investment management mandate spans four fixed income solutions: MD Short Term Bond Fund, MD Bond Fund, MDPIM Canadian Long Term Bond Pool, and MDPIM Canadian Bond Pool.
Launched in May 2009, Morgan Stanley Short Term Bond Fund is an open ended income fund with a stated investment objective to generate income from a diversified portfolio of short to medium term debt and money market securities.
That's because longer term bonds require people to lock their money up for a greater period of time -- and investors want to be compensated for that risk.
At the same time however an increase in the depth of Cypriot bonds in the markets might constitute a reason favourable to going ahead with a bond issuance as well as the further normalisation of the maturity profiles through repurchasing or exchanging short term bonds with longer term bonds.
Considering that foreign investors are mostly interested in long- term bonds, the 10-year auction results can provide some color regarding foreign investor appetite.
Finance Minister Charilaos Stavrakis announced on Tuesday that the Government will issue new long term bonds to the international markets around mid January in order to meet public needs for the 2010, which approach 2.5 billion euros.
The bank will exchange bonds issued in 2006 that mature in 2016 and which are trading below face value for shorter term bonds that mature in 2012 in a move to strengthen its balance sheet.