Dent Securities

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DEBT SECURITIES

Debt securities are financial assets that define the terms of a loan between an
issuer (the borrower) and an investor (the lender). The terms of a debt security
typically include the principal amount to be returned upon maturity of the loan, interest
rate payments, and the maturity date or renewal date.

The most common type of debt securities are bonds—e.g., corporate bonds and
government bonds—but also include other assets such as money market instruments,
notes, and commercial paper.

 Debt securities also carry risk—including, price risk and credit risk, depending on the
type of instrument and the issuer. Changes in interest rates can create the price risk.
Credit risk means the chance that the borrower may not pay off the debt when due. 

Debt security refers to a debt instrument—such as a government bond, corporate bond,


certificate of deposit (CD), municipal bond, or preferred stock—that can be bought or
sold between two parties and has basic terms defined, such as notional amount (the
amount borrowed), interest rate, and maturity and renewal date. Debt securities also
include collateralized securities, such as collateralized debt obligations (CDOs),
collateralized mortgage obligations (CMOs), mortgage-backed securities issued by the
Government National Mortgage Association (GNMA), and zero-coupon securities

Source: https://tickertape.tdameritrade.com/investing/equity-securities-debt-securities-16959
https://www.investopedia.com/terms/d/debtsecurity.asp

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