Fixed Income

Sinking Fund

In the world of finance, there exists a concept known as a bond indenture. This refers to an agreement between a borrower and a lender, outlining the terms and conditions of a bond. One important requirement specified in this agreement is the annual retirement of a certain portion of the debt. This means that the borrower is obligated to repay a predetermined amount of the bond each year. This ensures a gradual reduction of the debt and helps the firm manage its financial obligations effectively.

Related terms

Credit Spread

Understand the meaning and definition of Credit Spread in the context of stock market, trading, and investments.

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Junk bond

Understand the meaning and definition of Junk bond in the context of stock market, trading, and investments.

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Par

Understand the meaning and definition of Par in the context of stock market, trading, and investments.

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Bid-Ask Spread

Understand the meaning and definition of Bid-Ask Spread in the context of stock market, trading, and investments.

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Liquidity

Understand the meaning and definition of Liquidity in the context of stock market, trading, and investments.

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Risk Neutrality

Understand the meaning and definition of Risk Neutrality in the context of stock market, trading, and investments.

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