It also means creating a debt instrument that investors can believe in.
One would allow a debt deduction only for a market rate of return, say the first 11% or 12%, on a debt instrument.
Remember: A convertible's price is based on its yield as a debt instrument as well as on its value as a stock in waiting.
Furthermore, the notion that they have the security of a debt instrument is usually a fallacy rarely is there any liquidation value when an early-stage company fails.
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Anyhow, they are a debt instrument that trades more on the underlying credit risk of the company or the industry than on movements in interest rates.
The owner of the bill presents the bill, or debt instrument, to another person who has agreed to honor that bill in exchange for goods or services.
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Now what we do in more normal circumstances is to slide the money supply and debt instrument supply back and forth, usually more in the total forth direction.
Lorence notes that wash sale treatment depends on whether the ETF holds a basket of securities or if the ETF or exchange-traded note (ETN) is a security such as an option or debt instrument.
Ten years ago, an investor eager to play the two side by side had essentially one instrument: the convertible bond (debt switchable into equity).
After a workout in cooperation with the London Club of commercial creditors, the dollar-dominated debt was "by far the best-performing instrument in Russia last year, " Cooper says.
Corporate bonds are a fairly unique instrument in that they share characteristics from both the debt and equity side of the market.
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