Debt Instrument

Debt Instrument
A paper or electronic obligation that enables the issuing party to raise funds by promising to repay a lender in accordance with terms of a contract. Types of debt instruments include notes, bonds, certificates, mortgages, leases or other agreements between a lender and a borrower.

Debt instruments are a way for markets and participants to easily transfer the ownership of debt obligations from one party to another. Debt obligation transferability increases liquidity and gives creditors a means of trading debt obligations on the market. Without debt instruments acting as a means to facilitate trading, debt is an obligation from one party to another. When a debt instrument is used as a medium to facilitate debt trading, debt obligations can be moved from one party to another quickly and efficiently.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • Debt instrument — An asset requiring fixed dollar payments, such as a government or corporate bond. The New York Times Financial Glossary * * * debt instrument debt instrument ➔ instrument * * * debt instrument UK US noun [C] FINANCE, ECONOMICS ► a type of debt,… …   Financial and business terms

  • debt instrument — An asset requiring fixed dollar payments, such as a government or corporate bond ( corporate bonds). Bloomberg Financial Dictionary * * * debt instrument debt instrument ➔ instrument * * * debt instrument UK US noun [C] FINANCE, ECONOMICS ► a… …   Financial and business terms

  • debt instrument — noun A document evidencing a debt; the debt so evidenced …   Wiktionary

  • debt instrument — / det ˌɪnstrυmənt/ noun a document by which someone promises to repay a debt (NOTE: Debt instruments include such things as IOUs, CDs and bank notes.) …   Dictionary of banking and finance

  • debt instrument — document attesting to a debt …   English contemporary dictionary

  • debt instrument — Written promise to repay debt; e.g., promissory note, bill, bond, commercial paper …   Black's law dictionary

  • debt instrument — Written promise to repay debt; e.g., promissory note, bill, bond, commercial paper …   Black's law dictionary

  • debt instrument — noun a written promise to repay a debt • Syn: ↑obligation, ↑certificate of indebtedness • Hypernyms: ↑document • Hyponyms: ↑cash equivalent, ↑certificate of deposit, ↑ …   Useful english dictionary

  • debt instrument — A document used to raise non equity finance consisting of a promissory note, bill of exchange, or any other legally binding bond …   Accounting dictionary

  • debt instrument — A document used to raise non equity finance consisting of a promissory note, bill of exchange, or any other legally binding bond …   Big dictionary of business and management

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